The Iraqi oil trap and its paradox: A rentier economy amidst geopolitical shocks

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In an economy dependent on oil exports, and with the disruption of crude oil tanker traffic through the Strait of Hormuz due to the US-Iranian war, the core of the problem lies not only in the volume of exports and the revenues generated from them, but also in how these revenues are managed, and in the amount of spending that depletes them. On September 22, 2026, Iraqi Prime Minister Ali Zaidi told The New York Times that Iraq had lost nearly $60 billion in oil revenue due to the war with Iran. For approximately two months, Iraq was unable to export 90% of its oil, while 90% of its economy depended on crude oil exports. Before June 2025, when the first round of the US-Israeli conflict with Iran erupted, the Central Bank of Iraq’s reserves had exceeded $110 billion, but by October 2026 they had fallen to less than $60 billion. Although Zaidi’s government managed to balance global polarization and geopolitical tensions during its first five months in office, the biggest problem was the i...
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Inside the Barzani–Sharaa meeting: can Erbil bridge Damascus and the SDF?


By Dr. Pshtiwan Faraj | Kurdish Policy Analysis

The high-level meeting comes as Damascus reportedly prepares to finalize an agreement with the SDF, with security, refugees, border crossings, and Kurdish political representation all on the agenda.

  • Damascus Pushes SDF Dissolution as Barzani Steps In to Mediate
  • Historic Damascus Talks: Barzani Seeks Political Deal Between Syria and the SDF
  • Barzani's Damascus Visit Signals New Push for Syria's Kurdish Settlement

Nechirvan Barzani met Syrian President Ahmed Sharaa in Damascus as mediation efforts continue over the SDF, security cooperation, refugees, and Syria's political future.

Mediation between Damascus and SDF; Details of the meeting between Barzani and Ahmad Sharaa Syrian President Ahmed Shara received Kurdistan Regional Government (KRG) President Nechirvan Barzani at the People's Palace in Damascus. Barzani's official visit was at the invitation of Sharaa, in order to reflect the continuous relations between the two sides and the development of bilateral relations and enhance them in a way that serves the common interests of both sides. 

 According to SANA news agency, the two sides are expected to discuss a number of issues of common interest, in order to help support cooperation and strengthen coordination in various fields. According to media sources, Barzani has met with Sharaa to mediate between Damascus and SDF, while Damascus insists on announcing the dissolution of SDF this week. 

 The meeting will focus on a number of sensitive issues, including the future of the Simalka gate, the situation of the Peshmerga forces of Rozh, the issue of Syrian refugees in the Kurdistan Region, with ways to strengthen security and political coordination between Erbil and Damascus. Sources in Damascus said that a delegation led by Mazlum Abdi and Ilham Ahmad will arrive in Damascus, and the meetings will focus on the step of announcing the dissolution of "SDF" and completing the agreement to merge in Hasakah province.

Barzani stressed that the agreement is an important and right step towards a peaceful solution, and provides a strong basis for stability, social peace, peaceful coexistence between different communities, and the achievement of security and stability in Syria and the region in general. Kurdistan Regional Government (KRG) Spokesman Dilshad Shahab said : 

 The Kurdistan Region attaches special importance to relations between Damascus and Erbil. The stability of Syria has a direct impact on the stability of the entire region.President Barzani stresses the importance of Kurdish presence and participation in the institutions of the Syrian state.In addition to political issues, the visit will also discuss economic issues of mutual interest. The Iraqi Kurdistan Region is a safe haven for Syrian refugees.

#Syria #Kurdistan #SDF #Damascus #NechirvanBarzani


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