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Iraq's government, led by new President Nizar Amedi, is navigating a precarious security and diplomatic crisis while urgently attempting to restore its oil-dependent economy, as Iran-backed militias conduct attacks and regional powers like Saudi Arabia and the US recall ambassadors.
April 2026
Week of Apr 13, compared to 12-week average
Iraq's economy is in a state of urgent recovery focused on restoring oil exports after war disruption. Iran has exempted Iraq from Strait of Hormuz restrictions, allowing tanker passage and enabling preparations to ramp up production. Concurrently, Iraq is exploring alternative export routes via Syria and Saudi Arabia as a contingency.
Iraq's parliament elected Nizar Amedi as the new president, marking a key political transition. This occurs amid severe diplomatic strains, with Saudi Arabia and the US recalling their Iraqi ambassadors following attacks on diplomatic facilities and the kingdom. Regional diplomacy is active, with Pakistan, Saudi Arabia, and Egypt engaging Iraq on security and de-escalation.
Security is dominated by militia drone attacks and a high-profile kidnapping case. Iran-backed Iraqi militias launched drone strikes on oil facilities in southern Iraq and near Baghdad Airport, and a drone strike targeting Kuwait originated from Iraq. An American journalist, Shelly Kittleson, was kidnapped and later released by an Iran-backed militia.
Societal discourse is polarized by anti-US sentiment propagated by Shia militias and Iranian diplomatic channels. The dominant tension is the militia-led narrative framing the US as an aggressor, exemplified by an Iranian consulate post mocking a US rescue operation.