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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Kurdistan’s new Washington strategy: what the Continental Strategy deal signals


Kurdistan is professionalizing its Washington strategy at a moment when its security, energy interests and relationship with Baghdad are increasingly shaped by U.S. policy.

By Dr. Pshtiwan Faraj | Kurdish Policy Analysis

A revealing development in Kurdistan’s foreign-policy strategy: the KRG has retained Continental Strategy for a $75,000/month U.S. engagement effort.

This is more than lobbying. It reflects Kurdistan’s attempt to build stronger political access in Washington as its security, energy and relationship with Baghdad become increasingly intertwined with U.S. policy. The Kurdistan Regional Government of Iraq has retained Continental Strategy to promote awareness and understanding of its interests among US policymakers, business leaders and key decision-makers.

The six-month contract, which went into effect July 1, calls for a $75K monthly retainer. Thereafter, the pact shall continue month-to-month unless either party provides at least thirty days written notice of non-renewal in advance of its proposed termination.

Continental founder/president Carlos Trujillo heads the KRG team. He served in the first Trump administration as ambassador to the Organization of American States and was a campaign surrogate for outreach to Latino voters during the 2024 presidential campaign.

Carlos Trujillo
Carlos Trujillo

Managing partner Alberto Martinez, who was chief of staff to Florida Senator & now Secretary of State Marco Rubio; and partner Doug MacGillivray round out the KRG team.

Kurdistan, which shares a border with Iran, has “paid a heavy price” since the February outbreak of the war with the US, according to KRG prime minister Masrour Barzani.

”We have been targeted more than 1,000 times by missiles and drones directly from Iran or from inside Iraq by some of the militias,” he told Al Jazeera on Aug. 11. “We think these are all unjustifiable attacks on Kurdistan. Unfortunately, we had casualties and we lost people. Many of our infrastructure have been hit badly.”

The KRG is spending $75,000 a month to strengthen its voice in Washington.

O’Dwyer’s itself categorizes the story under Foreign Government and Foreign Agents Registration Act (FARA), making it particularly relevant to U.S. policy professionals and government-relations audiences.

O’Dwyer’s reports that the six-month agreement began July 1 at $75,000 per month, with Carlos Trujillo leading the KRG team. Trujillo served as U.S. ambassador to the Organization of American States during the first Trump administration, while Alberto Martinez previously served as chief of staff to then-Florida Senator Marco Rubio.

The choice of Continental Strategy—and former Trump ambassador Carlos Trujillo to lead the team—shows how seriously Kurdistan is taking U.S. policy at a moment when its security and strategic autonomy face growing pressure.

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