Iraqi Prime Minister Ali al-Zaidi concluded his first official visit to the United States on Saturday, July 18, following five days of high-level meetings in Washington that produced 48 agreements and memoranda of understanding with American companies, covering investments worth more than $60 billion. The deals mark a significant broadening of relations between the two countries, which have historically been defined almost entirely by military and security cooperation.
Speaking alongside President Donald Trump at the White House earlier in the week, al-Zaidi was direct about his priorities: he had come to Washington to talk "economy." Trump, who praised the Iraqi leader as a "champion," had previously signalled his support for al-Zaidi's appointment — the prime minister, a businessman, came to power this year after Trump effectively vetoed another candidate. The agreements signed during the visit span several sectors, with a heavy emphasis on energy. Partners include major international firms such as ExxonMobil, Shell, Halliburton, KBR, and GE Vernova, as well as satellite communications company Starlink. The US Treasury also concluded a deal with Iraq's central bank to help integrate a portion of Iraqi banks into the international banking system — a step that could ease long-standing financial isolation.
One of the most strategically significant elements is a plan to reconstruct a crude oil pipeline connecting Iraq to the Mediterranean Sea via Syria, which, if completed, would open new export routes for one of the world's major oil producers. Another agreement aims to help Iraq develop its own gas production capacity, reducing its current dependence on gas imports from neighbouring Iran to power its electricity grid. Oil-rich but infrastructure-poor, Iraq has struggled for decades with the legacy of successive wars, endemic corruption, and failing public services, and recently suffered additional revenue losses after the wider West Asia conflict disrupted oil exports.
The deals come with significant conditions attached, however. According to economic analyst Mazin al-Eshaiker, the United States has set a deadline of September 30 for Iraq to disarm its pro-Iran armed factions — militias that have long operated outside state control and have previously targeted American facilities. "The prime minister is now between a rock and a hard place," al-Eshaiker said. Al-Zaidi is expected to travel to Tehran at the end of the month, underscoring the delicate balancing act Iraq faces as a country that has long navigated competing pressures from both Washington and Iran.
The scale of the agreements signals a potential realignment in Iraq's foreign economic relationships, but analysts caution that turning memoranda of understanding into functioning projects will require political stability and security guarantees that remain far from certain. How al-Zaidi manages the disarmament question — and his reception in Tehran — will be closely watched in the weeks ahead.