Iraq Signs 48 Agreements with US Firms to Boost Oil-Driven Economy

Iraq and the United States have solidified economic ties with 48 agreements signed during Prime Minister Ali al Zaidi's first foreign trip since taking office in April. The deals, primarily in the energy sector, aim to revive Iraq's oil-dependent economy, which accounts for 90% of government revenue, amid regional tensions. Source: portafolioco, elnacionalve

Energy Deals

The agreements include partnerships between Iraqi ministries and US companies ExxonMobil, KBR, GE Vernova, Shell, and Halliburton. Iraq also signed a deal with Starlink to develop satellite internet infrastructure. Source: portafolioco, infobae

Pipeline Bypass

A key component is a memorandum with Syria to rehabilitate an oil pipeline to the Mediterranean port of Baniyas, bypassing the Strait of Hormuz, which has been disrupted by the Iran conflict. The project, called 'Corredor Energético Vital,' will be built by a consortium including Chevron, Transocean, and Urbacon Trading, with an initial capacity of 2 million barrels per day. Source: infobae

Political Context

President Donald Trump praised Zaidi as 'un campeón' and highlighted their 'formidable química,' signaling political support. However, Zaidi faces domestic pressure to disarm pro-Iranian militias that have attacked US infrastructure. Source: elnacionalve, portafolioco Iraq is seeking to recover from decades of conflict and endemic corruption, with deficient infrastructure and services. The new agreements are part of a strategy to attract foreign investment and reduce reliance on the Strait of Hormuz, currently blocked by Iran amid escalating hostilities between Tehran and Washington. Source: portafolioco