Iraq faces shift from US military presence to economic influence

Following the scheduled end of the US military presence in Iraq by September 2026, discussions have shifted toward a new era of economic and financial influence. Iraqi Prime Minister Ali Falih al-Zaidi has indicated that while military presence may conclude, US economic involvement through private companies will continue.

Recent high-level meetings between Iraqi officials and US leaders, including Donald Trump, Marco Rubio, and Scott Bessent, suggest a transition from military cooperation to financial and economic engagement. This shift highlights concerns regarding Iraq's economic sovereignty, specifically the role of the US Federal Reserve in managing Iraqi oil revenues and the oversight of the Iraqi banking system to combat money laundering.

Political figures, such as Ali al-Zubaidi of the Coordination Framework, have characterized the military withdrawal as a national achievement but warned that true sovereignty remains incomplete. They argue that Iraq must liberate its economic and financial decisions from US dominance and regain full control over its airspace to ensure complete independence.