Iraq's al-Zaidi Visits Washington for Trump Talks on Militias and 49% Foreign Ownership Cap
Updated
Updated · Atlantic Council · Jul 11
Iraq's al-Zaidi Visits Washington for Trump Talks on Militias and 49% Foreign Ownership Cap
3 articles · Updated · Atlantic Council · Jul 11
Summary
Ali al-Zaidi arrived in Washington for his first foreign trip as Iraqi prime minister, seeking to lock in Trump administration backing by pledging action on Iran-backed militias and new US energy agreements.
September 30 is Baghdad’s deadline for militias to surrender weapons, matching the planned end of the US-led Operation Inherent Resolve presence and giving al-Zaidi a near-term test of whether disarmament promises can stick.
Three major militia leaders have signaled readiness to disarm, but harder-line factions still reject that path, leaving al-Zaidi exposed to resistance from groups entrenched in Iraq’s politics and economy.
US pressure is already tangible: Washington withheld dollar shipments and paused security cooperation in April, while also pushing Iraq to cut reliance on Iranian gas and open its economy further by scrapping the 49% cap on foreign ownership.
The visit comes just days after Iraqi officials joined funeral rites for Iran’s former supreme leader, underscoring al-Zaidi’s balancing act as he tries to prove Iraq still serves US interests despite Iran’s deep influence.
Can a leader praised by Trump truly steer Iraq toward sovereignty, or will it remain a pawn in a larger geopolitical game?
Can US oil deals save Iraq's shattered economy when Iran uses it as a hub to bypass crippling global sanctions?
With key militias vowing to keep their weapons, is Iraq's disarmament plan doomed to fail before its September deadline?
Iraq’s 2026 Pivot: Al-Zaidi’s US Visit, Economic Diversification Drive, and the Battle for Security Reform
Overview
In May 2026, Iraqi Prime Minister Ali al-Zaidi visited Washington to launch a new era in US-Iraq relations. This visit aimed to shift the partnership from a focus on security and crisis management to a broader economic collaboration. The urgent need for this change came from Iraq’s heavy dependence on oil, which makes up over 90% of government revenue and 99% of exports, leaving the country vulnerable to global price swings and high youth unemployment. Al-Zaidi’s agenda centered on attracting international investment and diversifying Iraq’s economy, marking a strategic move toward stability and growth.