Prime Minister Ali al-Zaidi is due to meet President Donald Trump as Baghdad pursues energy, trade and investment deals, an energy fund proposal and broader U.S. backing amid pressure over Iran-linked armed groups.
Iraq is expected to sign several oil and gas memorandums of understanding during Prime Minister Ali al-Zaidi's visit to the United States, where he is due to meet President Donald Trump on his first foreign trip since taking office in May. Government spokesman Haider al-Aboudi said the talks are meant to shift ties with Washington from crisis management to a strategic economic partnership, with agreements expected in energy and trade and a broader push to attract U.S. investment. Oil is set to be a central issue as Baghdad seeks to raise production, expand export options and reduce the risk of future disruptions tied to any closure of the Strait of Hormuz. Iraq was badly affected by the waterway's shutdown in recent months during the US-Israel war on Iran, with about 90% of its 3.4 million barrels per day of exports passing through it. Al-Zaidi has said Iraq wants to lift oil production to 7 million barrels per day over the next three years from current output of about 4.5 million bpd. A proposed energy and development fund with the United States is also expected to be discussed to finance agreed projects, especially in energy. Al-Zaidi previously said the fund would initially be structured around 500,000 bpd of oil exports, with a goal of increasing that to as much as 2 million bpd. The trip also carries major political and security overtones. Sources cited by Al Jazeera said the Iraqi delegation includes more than 70 people, including key ministers, the head of the central bank, the national security adviser, lawmakers and businessmen, with meetings also planned with U.S. administration officials and the International Monetary Fund. One source said Iraq is seeking an IMF loan of up to $8 billion. Washington is also expected to raise the disarming of pro-Iran Iraqi armed factions, the restriction of weapons to state authority and Baghdad's relationship with Tehran. The visit comes ahead of a 2024 agreement to end the U.S.-led coalition's presence in Iraq as combat forces by the end of September, while some Iran-backed factions have rejected al-Zaidi's position on state control of weapons and criticized the Washington trip itself.