Exclusive: Factions set four conditions for freezing their response to Saudi Arabia

An informed source revealed on Thursday that the armed factions have “temporarily” frozen their decision to respond to Saudi Arabia, and have put forward their demands, which include an official apology and compensation from Saudi Arabia, otherwise they will proceed with a response. Dailynews reports

The source told Shafaq News Agency that “the factions that threatened to respond to the Saudi bombing that targeted a number of Popular Mobilization Forces headquarters in some provinces have frozen their decision to respond, and have made its implementation or non-implementation contingent on the extent of Saudi Arabia’s response to the event.”

He added that “the demands of the factions include Saudi Arabia acknowledging that it made a mistake in the bombing and paying financial compensation to the families of the victims, in addition to granting compensation for the damages inflicted on public property, and calming the Saudi media discourse against the factions in general, otherwise the factions will respond.”

This afternoon, the Security Media Cell announced on Thursday that it had raised the security readiness and combat preparedness in Iraq.

The cell said in a statement received by Shafaq News Agency: “Under the direction of the Commander-in-Chief of the Armed Forces, it was decided to raise the level of security readiness and combat preparedness of the security and military forces, including the implementation of training exercises and troop movements.”

She added, “This is within the framework of maintaining the high level of readiness of all security forces formations and enhancing their ability to perform their duties, which contributes to consolidating security and stability and protecting citizens and public interests.”

Regarding the position of the factions and their conditions, political researcher Ghaleb Al-Daami believes that “there is an Iraqi-Saudi rapprochement, and a genuine desire between the two countries to improve political, economic and security relations, including that Iraq should control weapons and not allow them to be directed against any Arab country.”

Al-Daami continues, during his interview with Shafaq News Agency, that “the conditions of the factions are not governmental, but rather they are from parties outside the state system and have no relation to the political system, and therefore they are not acceptable, because such matters are resolved only through the state, and Iraq has economic relations and common interests with Saudi Arabia in addition to oil and energy files, which the Prime Minister will discuss with Saudi officials during his upcoming visit.”

Prior to the official statement, a security source told Shafaq News Agency that orders had been issued by senior leaders to raise the level of readiness among the various branches of the security and military forces throughout Iraq.

The source said the orders included cancelling the leave of commanders and officers and keeping them on high alert.

She added that the precautionary measures coincide with the end of a deadline set by armed factions for the Iraqi government to take a position on Saudi Arabia, as well as preparations to carry out new arrests of those accused in corruption cases.

According to the sources, raising the level of preparedness is also linked to the decision taken by the State Administration Coalition regarding restricting weapons to official institutions and ending the activity of armed factions by September 30.

On Wednesday evening, the State Administration Coalition declared that entities engaging in behavior that threatens the country’s security outside the framework of official institutions are “outlaws and must be fought,” warning that any armed activity after September 30, 2026, will be subject to the provisions of the Counter-Terrorism Law.

On July 29, groups calling themselves the “Iraqi Resistance” announced that they had given the Iraqi government a deadline, ending this Thursday, to take action against Saudi Arabia, following accusations that it had targeted headquarters belonging to armed factions, threatening to retaliate if Baghdad did not take a stand.

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Iraq declares “war” on armed groups outside the state

On Wednesday evening, the State Administration Coalition declared that entities engaging in behavior that threatens the country’s security outside the framework of official institutions are “outlaws and must be fought,” and warned that any armed activity after September 30, 2026, will be subject to the provisions of the Counter-Terrorism Law. Dailynews reports

This came during the 37th periodic meeting of the coalition, which was held at the Government Palace in the presence of the President of the Republic, the Prime Minister, the Speaker of Parliament, the President of the Supreme Judicial Council, and the President of the Kurdistan Region, Nechirvan Barzani, along with the leaders of the forces affiliated with the coalition.

The State Administration Coalition was established on September 25, 2022, as a political umbrella that brought together the Coordination Framework, the Kurdistan Democratic Party, the Patriotic Union of Kurdistan, the Sovereignty and Determination Alliances, and the Babylon Movement.

The coalition paved the way for the formation of the government headed by Mohammed Shia al-Sudani in October of the same year, before it turned into a coordinating framework for the forces participating in running the country, holding periodic meetings to discuss political, security and economic issues and to follow up on the implementation of agreements and the government program.

The coalition said in a statement received by Shafaq News Agency that the meeting discussed the political, security, economic and service conditions in the country, in addition to regional developments and their repercussions on Iraq.

During the meeting, the Prime Minister reviewed efforts to enhance security and stability, improve services, and implement the ministerial program, as well as government measures to address economic and financial challenges, stressing that the interests of citizens are at the forefront of priorities.

The attendees affirmed their support for efforts to maintain security and stability and to restrict weapons to the state in accordance with the ministerial program that was voted on by the House of Representatives and became an effective law, and to prevent the use of Iraqi lands as a launching pad for attacks on neighboring countries or to drag Iraq into conflicts that do not serve the interests of its people, considering those who engage in behavior that threatens the security of the country as outlaws who must be fought in accordance with the articles of the constitution that prohibit the use of weapons outside the will of the state or the formation of any armed organization outside the official armed forces.

The attendees condemned the attacks on Iraqi armed forces units that resulted in the killing of a number of its members, calling for adherence to the deadline set for the confiscation of weapons, which ends on September 30, 2026.

The statement added that any armed activity outside the framework of the state after this date “will be dealt with in accordance with the counter-terrorism law.”

On the economic front, the meeting discussed the measures necessary to ensure the continuity of essential services and projects, diversify oil export outlets, enhance non-oil revenues, and combat waste, smuggling, and corruption.

The coalition affirmed Iraq’s support for efforts to promote calm and dialogue, and rejected the use of force in settling disputes, expressing Baghdad’s readiness to play a role in bringing together the views of the parties to regional conflicts in a way that preserves the security of the region and common interests.

The meeting also discussed developments in neighboring countries and ways to enhance border security, combat terrorism, drugs and organized crime, and develop Iraq’s foreign relations on the basis of mutual interests, respect for sovereignty and non-interference in internal affairs.

At the conclusion of the meeting, the State Administration Coalition called for expediting the formation of the government and sending the government program to the House of Representatives for discussion and approval.

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Iraq doubles its oil exports in July, easing the impact of declining Gulf supplies.

Data from Kpler showed that crude oil and condensate exports from the Gulf states stabilized during July at around 10.7 million barrels per day, a slight increase of 2% compared to June, but still about 40% lower than their levels before the escalation of tensions in the region. Dailynews reports

Iraq contributed to supporting the region’s exports after it doubled its exports compared to last June, benefiting from an increase in oil tanker shipments, which compensated for some of the decline in Saudi and Emirati exports.

Nevertheless, data showed a slowdown in oil flows during the second half of July as security tensions escalated in the Strait of Hormuz and the Red Sea, and the number of ships reporting attacks increased, prompting several tankers to change their routes or turn off their tracking systems while at sea.

The report noted that stable exports helped reduce concerns about global supply shortages, but oil tanker traffic through the Strait of Hormuz and Bab al-Mandab remains below pre-war levels, keeping geopolitical risks influential in energy markets.

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“American flirtation”: Opening up to Syria strengthens Iraq’s regional standing

The American openness to the new Syria is not purely in Syria’s interest, but rather, according to the British website “Amwaj”, it represents an opportunity for Iraq and its regional role, on the political and economic levels. Dailynews reports

In what the British website described as the clearest indication yet that Washington intends to transform Damascus from a pariah state into an active regional partner, the report stated that the Donald Trump administration recently informed Congress of its intention to cancel Syria’s designation as a state sponsor of terrorism, following decisions to lift several sanctions against it.

The British website said in a report, translated by Shafaq News Agency, that the appointment of the US ambassador to Turkey, Tom Barrack, as a presidential envoy to Iraq and Syria indicates that Washington views the three countries as a unified stage for US policy in the region.

The report went on to say that for the government of Iraqi Prime Minister Ali al-Zaidi, this rearrangement does not pose a threat, but rather an opportunity, provided that Iraqi officials view it correctly. It noted that the prevailing view among regional analysts is that Baghdad is in a risky position between Washington and Tehran, with Syria being another arena that Iraq must be wary of. However, it considered that the West’s transformation of Syria into an active player requires “a stable eastern flank, a flank that passes through Iraq.”

Therefore, the report concluded that lifting US sanctions on Syria creates pressure not to isolate the al-Zaidi administration, but to court it.

The report pointed out that the reconstruction of Syria requires land access, and Iraqi territory represents the corridor that can connect Damascus with Iran and the Gulf states.

The report noted that a hostile or chaotic Iraqi border would leave the new Syrian state exposed along its longest border at the very moment it is trying to consolidate its sovereignty, pointing to the proliferation of official crossings along the 599 km border between them.

The report quoted a prominent figure in the ruling coordination framework as saying that the security issue between the two sides represents “the axis around which the relationship between Baghdad and Damascus revolves,” explaining that cooperation between the two countries is likely to deepen “if both recognize that ISIS poses a common security threat,” noting that cooperation could expand further if the two neighbors could build “a common framework for participation that transcends sectarian considerations.”

In this context, the report stated that Syrian President Ahmed al-Sharaa had previously been arrested in Iraq on terrorism-related charges when he was a member of al-Qaeda, before later founding the Sunni armed group Hayat Tahrir al-Sham.

Referring to this past, the prominent figure in the coordination framework said that Iraqi-Syrian relations are still being shaped by “the character of its new government,” noting that, while this legacy will not be quickly forgotten in Baghdad, both sides now have a reason to move beyond it.

According to a prominent figure in the Iraqi Foreign Ministry, as reported in the report, rather than being imposed from the outside, Iraqi decision-makers have their own interests in rebuilding relations with Damascus, noting that the Iraqi-Syrian relationship is “gradually shifting from a mostly security framework to a more diplomatic and economic one,” a framework that includes, for example, the memorandum of understanding on the Kirkuk-Banias pipeline recently signed between them.

The report quoted the source in the Foreign Ministry as saying that the pipeline represents “Iraq’s strategic interest in diversifying its oil export routes,” and as a result, “Syrian territory holds great geopolitical importance for Iraq.” Iraqpolitical news

Outside the energy sector, the report quoted the diplomatic source as saying that the relationship between the Iraqi Shiite community and the many holy shrines inside Syria could play a crucial role in building relations, noting that this relationship “should not be understood solely as a religious or doctrinal issue,” but also that ensuring the stability of Syria serves the cause of maintaining internal security within Iraq itself.

The report also noted that al-Zaidi inherited the process of opening up to Syria from his predecessor, Muhammad Shia al-Sudani, and therefore it seems that the new Iraqi administration is moving forward in this direction.

He went on to say that Damascus, for its part, is not only courting Baghdad, recalling that al-Sharaa recently received Kurdistan Region President Nechirvan Barzani in Damascus with full presidential honors, in the first such visit by a senior official in the Kurdistan Region since the fall of Bashar al-Assad’s regime.

The report noted that these divergent paths indicate that Iraq’s openness to Syria is based on more than one Iraqi relationship at a time, even with Baghdad remaining its main channel.

The report said that Iraq could deepen relations with Western-backed Damascus, specifically because Washington wants it now, but it also cannot do so in a way that destroys its relationship with Iran.

The report quoted a source within the coordination framework as saying that cooperation with Syria would be sustainable, as long as the two countries “avoid adopting fundamentally contradictory positions on key regional issues,” including their respective approaches to Palestine, the Lebanese Hezbollah, and Iran.

The report concluded by saying that the Trump administration’s revocation of Syria’s designation as a terrorist state is usually interpreted in terms of its impact on Damascus. It continued, stating that “its most interesting effect may be on Iraq,” explaining that by making Syria’s reconstruction and security a Western priority, Washington has made Iraq’s cooperation crucial, and in diplomacy, value is leverage.

The report concluded by saying that Iraq is being “wooed into a role its leaders already wanted to play, and the only real question now is how open they are to playing that role.”

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The Kurdistan Regions Authority responds to the Kirkuk governor regarding Article 140 and calls for respect for the constitution.

The General Authority of the Kurdistan Regions rejected on Thursday the statements of Kirkuk Governor Mohammed Saman Agha regarding Article (140) of the Iraqi Constitution, stressing that the Constitution represents the basis upon which the political system in Iraq is based, and that any statements that contradict it would deepen the disputes and divert attention from the service files that the governorate needs. MiddleEast news

The commission said in a statement received by Shafaq News Agency that “the Iraqi constitution constitutes the true contract between all components of the Iraqi people, and is the fruit of the Iraqis’ struggle against dictatorship,” noting that “adherence to it is not only a legal duty, but also a respect for the will of all the people of Iraq, including the people of Kurdistan.”

She added that “Article (140) of the Constitution represents the constitutional roadmap for addressing the issue of disputed areas, foremost among them Kirkuk, stressing that it constitutes the constitutional framework for addressing this issue within the federal system in Iraq.”

The commission expressed its rejection of what it described as “unconstitutional statements” issued by the governor of Kirkuk regarding Article (140), calling on him to prioritize the spirit of peaceful coexistence in the province and to refrain from using terms or positions that contradict the constitution and the true will of the Iraqi people.

She stressed that such statements lead to widening the circle of distrust between the components, and divert attention from the service issues that Kirkuk needs, stressing that the governorate today is more than ever in need of strengthening stability, understanding and joint work to address the challenges facing its citizens.

This statement comes days after statements by Kirkuk Governor Mohammed Saman Agha, in which he said that the Iraqi state “made a mistake when it enacted Article (140) of the Iraqi Constitution,” considering that the article ended with the expiration of its time period, which provoked widespread reactions from Kurdish forces and parties.

Kirkuk is one of the disputed areas between Erbil and Baghdad covered by Article 140 of the Constitution. It was under joint authority between the Kurdistan Region and the Federal Government before the independence referendum held by the region in September 2017.

Article 140 stipulates the removal of demographic policies implemented by Saddam Hussein’s regime in the disputed areas in favor of the Arabs at the expense of the Kurds, and then a census of the population before the final step, which is to hold a referendum in which the population will determine whether they wish to join the Kurdistan Region or remain under the administration of Baghdad.

The implementation phases of the article were scheduled to be completed by the end of 2007, but security and political problems prevented this.

In 2019, the Supreme Federal Court ruled that Article (140) of the Constitution of the Republic of Iraq would remain in effect, confirming that it would continue until its requirements were implemented and the objective of its legislation was achieved.

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A decline in cash credit and deposits in Iraqi banks during the first half of 2026

Official data showed a decline in total deposits and cash credit in Iraq up to the end of May 2026, while the private sector continued to take the largest share of bank financing. Iraqeconomy updates

According to data seen by Shafaq News Agency, total deposits at banks reached 104.296 trillion dinars by the end of May 2026, compared to 104.727 trillion dinars in April and 105.090 trillion dinars in March, reflecting a continued decline for the third consecutive month.

The deposits were distributed between 31.791 trillion dinars for the central government, 22.890 trillion dinars for public institutions, while private sector deposits amounted to 49.615 trillion dinars, constituting about 47.6% of total deposits.

In contrast, total cash credit recorded 73.173 trillion dinars by the end of May, compared to 73.637 trillion dinars in April, and 73.832 trillion dinars in March.

Credit granted to the central government amounted to 23.420 trillion dinars, while credit provided to public institutions reached 2.424 trillion dinars, while the private sector accounted for 47.329 trillion dinars, or approximately 65% ​​of total monetary credit.

An increase in deposits is an indicator of growing confidence in the banking sector among individuals and businesses, as deposits provide banks with the necessary liquidity to finance economic activities. Credit, on the other hand, represents loans and facilities granted by banks to the government and the public and private sectors. Its growth, particularly that directed to the private sector, is a significant indicator of support for investment and production, and of stimulating economic activity. Conversely, a continued decline in deposits and credit may reflect a slowdown in economic activity and a reduced capacity of banks to finance projects.

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Parliamentary Finance Committee: No solutions yet for the salary crisis

On Thursday, Hussein al-Daraji, a member of the parliamentary finance committee, confirmed that the finance minister had requested to be hosted in parliament to explain the country’s financial situation and discuss the draft borrowing law, while noting that there were no solutions yet to the salary crisis. Dailynews reports

Al-Daraji told Shafaq News Agency that the parliament’s presidency has not yet set a date for the session to host the finance minister, which the latter requested, indicating that the session will include a discussion of the draft borrowing law, which the government had previously sent as part of a package of draft laws.

He explained that the draft borrowing law will undergo the first and second readings, and then be discussed within the parliamentary finance committee, which will make some amendments to it before it is put to a vote in the House of Representatives.

The member of the Finance Committee concluded that the salary crisis remains unresolved to this day.

Last Monday, Iraqi Finance Minister Faleh Sari submitted a formal request to the Speaker of Parliament to host him at the next parliamentary session dedicated to presenting the financial and economic situation the country is going through.

For his part, Iraqi government spokesman Haider al-Aboudi confirmed that Iraq is facing “severe” financial challenges, noting that the government needs about 10.8 trillion dinars monthly to cover employee salaries and public expenditures, while the country’s oil revenues do not exceed 2.5 trillion dinars.

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The movement opposing “Khor Abdullah” demands a clear response from Baghdad regarding the Kuwaiti and Saudi memoranda.

The movement opposing Khor Abdullah demands a clear response from Baghdad regarding the Kuwaiti and Saudi memorandaShafaq News – Basra
The popular movement opposing the Khor Abdullah agreement called on the federal government on Thursday to issue a clear response to the protest notes sent by both Saudi Arabia and Kuwait regarding the maritime borders approved by Iraq, stressing that the country’s borders and waters are not subject to negotiation or compromise. Dailynews reports

The movement stated in a statement that it is closely following the recent moves and restrictive measures represented by the submission of protest notes by the authorities in the Kingdom of Saudi Arabia and Kuwait to the United Nations, regarding the map of maritime areas and national coordinates approved by Iraq to establish its maritime borders and preserve its national waters and resources in these waters, calling on the Iraqi government to exercise its duty to protect the country’s sovereignty and maritime rights in the face of “these practices that aim to deprive Iraq of its maritime and historical rights and attempt to confiscate its oil and gas wealth in its territorial waters.”

The movement urged the government to “demand that the authorities of these countries immediately cease practicing these policies, political pressure, and legal intimidation in international forums against Iraq’s maritime rights, and to refrain from the language of allegations that disrupts opportunities for cooperation, brotherhood, and respect for Iraq’s sovereignty and maritime rights.”

The movement affirmed in its statement that “Iraq’s borders, waters and sovereign wealth are not subject to negotiation or concession, and all neighboring countries must respect Iraq’s full sovereignty in accordance with international laws and norms, and not impose a fait accompli policy on its maritime fields and resources,” reiterating the demand for “a firm governmental stance and the activation of the role of the Ministry of Foreign Affairs by beginning to exercise its role, and taking a clear national and historical stance towards these actions, rejecting these memoranda and claims, and defending Iraq’s maritime coordinates in the United Nations and international forums firmly and affirming its established right.”

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The Minister of Oil directs an increase in production from Kirkuk oil fields and prioritizing local employment.

Oil Minister Bassem Mohammed Khudair Al-Abadi stressed on Thursday the need to increase and sustain crude oil production from the four Kirkuk fields, while also promoting gas investment and employing local workers. Dailynews reports

This came during his chairmanship of the fourth meeting of the joint management of the field development project being implemented by the British company BP.

The Ministry of Oil’s media office said in a statement received by Shafaq News Agency that the minister opened the fourth meeting of the joint management of the Kirkuk Four Fields Development Project, which includes the Bai Hassan, Jambur, Khabbaz, and Kirkuk fields with its two domes (Avana and Baba).

Al-Abadi stressed the importance of increasing and sustaining crude oil production, as well as raising gas production and investment rates to meet the country’s needs, emphasizing the need to pay attention to providing services to the areas surrounding the fields through the project’s social benefit programs.

The minister also directed that priority be given to employing local labor in Kirkuk Governorate, and that this file be included among the priorities of the Joint Management Committee, as well as focusing on safety, health and environment standards, and working to achieve the goal of “zero accidents” in work sites.

He also stressed the importance of implementing quality training programs for national staff, which would contribute to raising their efficiency and keeping pace with the latest technologies used in developing oil fields, emphasizing that the training should be practical and effective, not merely formal.

The meeting was attended by the chairman and members of the Joint Management Committee from the Ministry of Oil, along with representatives of the British company BP, to follow up on the implementation of the stages of developing the oil fields in Kirkuk.

For his part, the representative of Kirkuk Governorate, Helo Qader Al-Jabari, confirmed that BP had pledged to give priority to the people of the governorate in job opportunities within oil field development projects, during a meeting held in the capital, Baghdad, with the company’s general manager in Iraq.

Al-Jabari told Shafaq News Agency that he held a meeting with the General Manager of BP in Iraq, Zaid Al-Yasiri, in the presence of Member of Parliament Dylan Ghafour, to discuss the company’s work mechanism in the Kirkuk oil fields.

He added that the meeting focused on the need to give the people of Kirkuk priority in job opportunities, and to allocate an appropriate percentage of jobs to them in their various components and specializations, in order to ensure justice and benefit from local competencies, and to contribute to supporting stability and development within the governorate.

He noted that company officials showed understanding of the demands made, and pledged to work on giving Kirkuk residents priority in appointments related to the company’s projects, according to the needs of the work and the required specializations.

Al-Jabari stressed that the issue of employing the people of Kirkuk will remain under follow-up with the company’s management and the relevant government agencies, to ensure the implementation of these commitments and the achievement of the best results, in a way that preserves the rights of the people of the governorate and provides job opportunities for local talents.

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Al-Zaydi directs the adoption of pre-audit procedures for contracts and the detection of loopholes before they turn into corruption.

Prime Minister Ali Faleh al-Zaidi directed on Tuesday the adoption of a pre-audit mechanism before signing contracts, while also calling for the identification of loopholes before they escalate into corruption cases.

The Prime Minister’s office stated in a press release received by the Information Agency that “al-Zaidi, during a meeting with the Federal Board of Supreme Audit and the Integrity Commission, directed the adoption of the principle of pre-audit for contracts before their signing, as a preventative measure aimed at addressing problems before they occur, because it represents a safeguard for institutions.”

According to the statement, al-Zaidi emphasized that “responsibility requires hard work, achievement, and fulfilling duties to the fullest extent,” stressing “the necessity for everyone to bear their legal and national responsibilities.”

He called on the Federal Board of Supreme Audit and the Integrity Commission to “act as the eyes of the state in discovering loopholes and addressing them before they develop into problems or corruption cases.”

In this regard, he directed the formation of a specialized team from the Federal Board of Supreme Audit to conduct pre-audit reviews of contracts within a period not exceeding ten working days. He also directed the establishment of ceilings and values ​​for contracts subject to this type of review, ensuring both speed of execution and efficiency of oversight.
He emphasized the necessity for government contracts to be legally and technically sound and based on fair and reasonable prices. He explained that inflated costs are among the most prominent avenues for corruption, requiring a firm response while guaranteeing the implementation of projects according to the specifications and quality stipulated in the contracts.

He called for the consolidation of a preventative mindset in oversight work, alongside the traditional oversight role, affirming that the Federal Board of Supreme Audit and the Integrity Commission represent the state’s shield in protecting public funds and guaranteeing citizens’ rights—a national and ethical responsibility.

He emphasized “the importance of keeping the Federal Board of Supreme Audit free from any political considerations or quotas, and that the criteria of competence, integrity, professionalism, and impartiality should be the foundation of its work,” reiterating “the government’s commitment to providing all forms of support to the Board and the Integrity Commission to enable them to perform their duties efficiently and independently.”

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