Iraqi Prime Minister Ali Falih Al-Zaidi's first official visit to the U.S., beginning on July 13, 2026, comes at a time of rapid developments in Iraq and across the Middle East. Amid an increasingly tense regional environment, the new Iraqi government is seeking to redefine its partnership with Washington by broadening the relationship beyond its traditional security focus to encompass investment, energy, technology, and institutional reform.

The prime minister has announced that he will be accompanied by a delegation of business leaders and private-sector representatives, underscoring the government's emphasis on the economic dimension of the visit. Against this backdrop, the trip will serve as an early test of the new government's ability to translate its reform agenda into tangible partnerships. It also reflects an interest shared by both Baghdad and Washington in building a more comprehensive bilateral relationship that links security, economic development, and institutional reform, while supporting Iraq's broader efforts to diversify its international partnerships and strengthen its position within the region's evolving geopolitical landscape.

Interconnected Dynamics

Al-Zaidi's visit to Washington comes at a time of complex domestic and regional developments that require Iraq's new government to navigate a range of overlapping challenges, including completing the process of state-building, strengthening security and stability, and maintaining a balanced foreign policy. In this context, the visit carries significance that extends beyond bilateral relations, representing part of Baghdad's broader effort to reposition itself both domestically and regionally. The following are among the key developments forming the backdrop for the Iraqi prime minister's visit to Washington:

1. The Government's Drive for Economic Reform: Al-Zaidi assumed office as one of Iraq's youngest prime ministers and brings a stronger background in economics and banking than in conventional politics. This experience has been reflected in a government program that places economic reform, investment, and institutional development at the forefront of its agenda.

The government was formed through a broad consensus of political forces—which is what enabled it to secure parliamentary backing in the first place—but this also means it now has to play a delicate balancing act between them. Within this dynamic, the government seeks to reinforce the concept of a state built on strong institutions by linking economic reform to security and administrative reform, on the premise that lasting security and effective anti-corruption measures are essential prerequisites for attracting investment and implementing its reform agenda.

2. Ongoing Disputes Over Sovereign Ministries: Although the government secured parliament’s vote of confidence in May 2026, its formation remains incomplete due to continued disagreements over several cabinet positions, most notably the Ministries of Defense and Interior. These portfolios have become one of the principal points of contention between the prime minister and Iraq's political blocs.

Al-Zaidi has insisted on appointing independent military or security professionals to lead the two ministries, while political forces—including the Coordination Framework and the Taqaddum Alliance—have advocated nominating civilian candidates backed by their respective parties, leaving the prime minister to select from among them. This dispute underscores the continued influence of political power-sharing arrangements over appointments to key sovereign positions.

The issue has become even more significant given the persistent threat posed by ISIS and the need for institutional leadership capable of modernizing Iraq's armed forces and security agencies while implementing the government's security-sector reform program.

3. Efforts to Consolidate the State's Monopoly on Arms: Debate continues over restricting the possession of weapons to the state. While some armed factions have expressed a willingness to cooperate with official institutions, others continue to retain their weapons, limiting the government's ability to establish full control over the country's security landscape.

This issue has gained further prominence as Al-Zaidi has made the development of a professional military institution one of his government's top priorities. He has repeatedly declared that the government "will not allow any weapons to remain outside the authority of the state and the rule of law," while pledging to modernize the Iraqi army, strengthen its capabilities, and provide it with the resources it requires.

Within this context, the Ministries of Defense and Interior are viewed as central pillars of the government's strategy to consolidate the state's monopoly on arms, restructure the security sector, deepen military cooperation with the U.S, and expand security partnerships with regional actors. These objectives also align with Washington's long-standing emphasis on strengthening Iraq's armed forces and building security institutions capable of assuming responsibility in the post-coalition era.

4. The Persistence of Terrorist Threats: Iraq continues to face security threats linked to terrorism, as demonstrated by ongoing operations against ISIS. Three airstrikes were recently carried out north of Kirkuk following the death of an officer from Iraq's Counter Terrorism Service during clashes with ISIS militants on July 5, 2026.

Security operations have also continued in the Kurdistan Region, where authorities arrested individuals accused of promoting ISIS through social media platforms, highlighting how counterterrorism efforts now extend beyond the battlefield to include the digital realm.

5. Intensified Efforts to Combat Corruption: Combating corruption remains a central pillar of the government's program, reflecting its importance to institutional reform and the improvement of Iraq's investment climate. To this end, the government has launched an extensive anti-corruption campaign that includes expanding investigations into major oil-sector cases, seizing billions of Iraqi dinars and assets linked to corruption suspects, and continuing efforts to pursue individuals who have fled abroad.

The prime minister has also directed the government to offer financial incentives to citizens who report assets and public funds obtained through corruption-related crimes. As part of this initiative, an online platform has been created to receive reports in an effort to broaden public participation in uncovering corruption and recovering state assets.

At the same time, the government has emphasized that recovered funds will be used to reduce the budget deficit, finance public service projects, and strengthen Iraq's financial reserves. It has likewise stressed that anti-corruption efforts are being conducted as an entirely Iraqi initiative, free from external interference—reflecting an effort to reinforce the independence of judicial and security institutions and strengthen confidence in the country's reform process.

6. The Continuing Impact of the U.S.–Iran Conflict: The Iraqi prime minister's visit also comes amid continued regional tensions following the conflict involving the U.S., Israel, and Iran, which has had direct security and political repercussions for Iraq, including attacks affecting its territory and growing concerns that the country could become an arena for regional confrontation.

Against this backdrop, the Iraqi government is seeking to contain the domestic consequences of the crisis by strengthening state control over security decision-making and accelerating efforts to modernize the military establishment, thereby reducing the likelihood that Iraq will be drawn into regional confrontations or that its territory will be used as a platform for external conflicts.

7. Maintaining a Balanced Relationship with Tehran: The Iraqi government is also seeking to maintain a balanced relationship with Iran. Reports indicate that it has begun implementing new procedures governing the entry and movement of Iranian officials within Iraq, requiring all visits to be coordinated through official diplomatic channels and conducted with the government's knowledge and approval.

The move appears intended to place relations with Tehran on a more institutional footing, particularly ahead of Al-Zaidi's visit to Washington.

More broadly, Baghdad remains committed to a foreign policy centered on diversifying partnerships and maintaining balanced relations with regional and international powers, while trying to ensure that Iraq does not align itself with competing geopolitical blocs or become an arena for external actors to project their influence.

This approach is further reflected in the prime minister's announcement that he intends to visit Turkey, Iran, and Saudi Arabia following his trip to Washington, underscoring Baghdad's strategy of leveraging its relations with multiple partners in support of its economic and development priorities.

A Broad Agenda

The issues on Al-Zaidi's agenda during his visit to the U.S. reflect the priorities of Iraq's newly formed government, which seeks to broaden cooperation with Washington beyond its traditional security focus to encompass economic development, institutional reform, and investment, while maintaining close coordination on security matters. This approach underscores Baghdad's intention to build a more diversified partnership that supports its domestic reform agenda and responds to evolving regional dynamics.

1. Strengthening Economic and Investment Cooperation: Economic cooperation tops Al-Zaidi's agenda as the Iraqi government seeks to redefine its relationship with the U.S. on the basis of economic and investment interests rather than the traditional emphasis on security cooperation.

The prime minister's decision to bring a delegation of business leaders, banking executives, and private-sector representatives reflects Baghdad's determination to expand the presence of U.S. companies in the Iraqi market, attract foreign investment, facilitate technology transfer, and benefit from American expertise in management, finance, and innovation.

The government also seeks to establish a permanent institutional framework for economic cooperation that provides a more stable environment for investors, supports economic diversification, stimulates private-sector growth, and reduces Iraq's dependence on oil revenues.

2. Expanding Cooperation in the Energy Sector: Energy represents one of the central pillars of Al-Zaidi's visit as the Iraqi government works to address the sector's longstanding structural challenges, particularly chronic electricity shortages and the country's continued reliance on imported energy.

Reports indicate that Iraq and the U.S. are expected to sign memoranda of understanding covering the oil and gas sectors, including the involvement of specialized U.S. companies to increase production capacity and develop additional oil export routes, thereby reducing Iraq's vulnerability to potential disruptions in the Strait of Hormuz.

3. Enhancing Cooperation on Institutional Governance: Institutional reform complements the economic cooperation between Baghdad and Washington in an important way. By modernizing the country’s legal and administrative frameworks, strengthening governance and transparency, simplifying administrative procedures, and accelerating digital transformation, the Iraqi government aims to improve the business environment and make Iraq more attractive to foreign investors.

The government also views the completion of legislative and administrative reforms, together with strengthening judicial independence, as essential prerequisites for ensuring the sustainability of economic reform and reinforcing investor confidence.

4. Supporting Security Sector Reform and Strengthening State Sovereignty: Security sector reform still depends on finalizing the formation of the government. In particular, the appointments to the Ministries of Defense and Interior need to be decided, since these two ministries will play a central role in implementing the government's strategy to restructure Iraq's military and security institutions and consolidate the state's monopoly on arms.

In this context, the prime minister's visit to Washington provides an opportunity to strengthen U.S. support for Iraq's efforts to build a more professional military establishment while tightening oversight of funding sources for armed factions. This includes implementing new controls on U.S. dollar flows in support of broader efforts to reinforce state sovereignty and reduce the influence of armed groups operating outside official institutions.

5. Deepening the Iraq-U.S. Security Partnership: Although economic issues dominate the visit's agenda, security cooperation will remain a core component of the discussions, particularly regarding the future of military relations between Baghdad and Washington following the conclusion of the Global Coalition's combat mission.

The talks are expected to focus on expanding training and capacity-building programs, providing technical and intelligence support, strengthening border security, and disrupting terrorist financing. These priorities reflect the evolution of bilateral relations toward a long-term security partnership centered on strengthening Iraqi institutions rather than maintaining a direct military presence.

6. Possible U.S. Pressure to Limit Iraq-Iran Relations: Al-Zaidi's visit may also provide Washington with an opportunity to encourage Baghdad to curb its relationship with Iran.

This possibility is supported by a report in The Wall Street Journal published on July 8, 2026, which stated that Iraq had agreed to new U.S. measures designed to prevent U.S. dollars from reaching Iran and its allied militias. In return, the administration of President Donald Trump reportedly resumed cash shipments to Baghdad after a four-month suspension.

Conclusion

Al-Zaidi's first visit to the U.S. highlights how Iraq-U.S. relations are evolving into a broader strategic partnership in which economic development, energy cooperation, and institutional reform play an important role alongside continued security cooperation.

For its part, Washington appears to view Iraq's new government as a partner that can promote stability and reform in ways that serve the shared interests of both countries.

Nevertheless, while the visit may produce important understandings between the two sides, its lasting impact will ultimately depend on the Iraqi government's ability to translate its commitments into actionable policies in support of its agenda, particularly as relates to strengthening state institutions, improving the investment climate, reinforcing the rule of law, and consolidating domestic stability.

The Key Priorities of the Iraqi Prime Minister's Visit to the United States