“US-Iraq Relations Set for Shift: PM Promises Economic Partnership and Stability”

June 23, 2026

In a significant development in the region, Iraqi Prime Minister Fadel Al-Mahdawi announced on Thursday that the country’s relationship with the United States is poised to undergo a major transformation, shifting from a military partnership to a robust economic cooperation.

Addressing a gathering of local business leaders and diplomats, Al-Mahdawi emphasized the importance of nurturing a strong economic partnership with Washington, aimed at fostering Iraq’s growth and stability. The Prime Minister’s remarks came as the US continues its military withdrawal from Iraq, a process that is expected to be completed in the coming months.

According to sources close to the Prime Minister, Al-Mahdawi is keen to leverage the upcoming economic partnership with the US to attract increased foreign investment, drive growth, and create jobs for Iraqis. This, in turn, is expected to lead to a significant reduction in poverty and unemployment, which have been major concerns for the Iraqi government.

In a clear reference to the security situation in the country, Al-Mahdawi suggested that the imminent withdrawal of US forces would signal the end of any justification for armed resistance. “After the withdrawal of all US forces, there will be no justification for any resistance in Iraq,” the Prime Minister stated, signaling a tough stance on extremism.

The US has been a key ally of Iraq since the 2003 US-led invasion, and the two nations have maintained a significant security partnership ever since. However, as the security landscape in Iraq has stabilized, Baghdad has sought to reposition its relationship with Washington, focusing increasingly on economic cooperation and development.

Experts have welcomed the Prime Minister’s remarks, arguing that they signal a major shift in Iraq’s foreign policy priorities. “For too long, Iraq’s relationship with the US has been defined by security considerations,” said Ziad Ali, a renowned security analyst. “Now, with the Prime Minister’s emphasis on economic partnership, Baghdad is clearly seeking to diversify its relationships and drive growth.”

Washington has yet to comment officially on Al-Mahdawi’s remarks, but diplomatic sources indicate that the US is keen to build on the momentum of the emerging economic partnership. As the two nations continue to navigate this significant shift in their relationship, one thing is clear: Iraq’s economic future is set to take center stage.

In related news, the Iraqi government has announced plans to establish a specialized economic office in Washington, aimed at facilitating business ties and promoting trade between the two nations.