Tehran Loses Ground to Najaf’s Rising Influence in Baghdad

PMF fighters patrol northern Baghdad in archived photo – PMF Media
PMF fighters patrol northern Baghdad in archived photo – PMF Media
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Tehran Loses Ground to Najaf’s Rising Influence in Baghdad

PMF fighters patrol northern Baghdad in archived photo – PMF Media
PMF fighters patrol northern Baghdad in archived photo – PMF Media

Iran’s sway over Iraq’s Shiite political landscape is weakening as the Najaf religious establishment, led by Cleric Ali al-Sistani, asserts greater influence, challenging Tehran’s efforts to preserve its armed proxies and obstruct state-led reforms.

Despite pressure from Iran’s Revolutionary Guards to resist internal reforms – particularly those aimed at disarming rogue militias and integrating the Popular Mobilization Forces (PMF) into the state – sources close to the Shiite clergy say Najaf has grown increasingly alarmed by what it views as a political system on the brink of collapse.

Speaking to Asharq Al-Awsat since late July, political insiders described a “silent confrontation” between two competing visions for Iraq's Shiite community. One is backed by the pro-Iran Coordination Framework that dominates government.

The other is quietly advanced by Najaf, which sees urgent need for reform amid regional volatility.

“The system is facing its most serious test since 2003,” one religious source said. “It is losing its ability to sustain itself,” they added.

Hezbollah Brigades Threaten Government

Tensions flared in late July when Kataib Hezbollah, a powerful Iranian-backed militia, lashed out at Prime Minister Mohammed Shia al-Sudani, accusing him of provoking a confrontation with security forces.

The group released a video showing its field commander, Jamal Mahlel, warning the premier that his hopes for re-election were doomed.

“You will not have a second term,” Mahlel said, echoing threats once directed at former PM Haider al-Abadi.

The video, reportedly leaked by the group itself, followed a rare armed clash on July 27 between Kataib Hezbollah and Iraqi security forces over alleged land seizures near Baghdad. While details remain murky, the confrontation prompted the group to declare the end of its security operations in the capital’s southern belt – a symbolic retreat from areas long used as power bases by Iran-backed factions.

The fallout was significant. In a lengthy statement, militia spokesman Abu Ali al-Askari condemned the government’s actions, accusing the army of attacking “a group of youths” with heavily armed forces and armored vehicles.

“These areas were part of what was once called the Baghdad Belt,” said Askari, acknowledging a loss of ground. “A mistake was made, and the cost was high.”

Tehran Calls for Readiness, Sees Another War Looming

At the same time, Iranian officials warned allied factions to prepare for “imminent danger.” According to two militia sources, senior figures from the Revolutionary Guards – including Quds Force commander Esmail Qaani – urged Iraq’s groups to resist disarmament, describing it as a critical moment while Iran rebuilds its military capabilities.

One of the sources said Tehran’s message was unequivocal: “Every weapon will matter in the next war.” The same warning, he added, was also conveyed to Lebanon’s Hezbollah.

On July 29, Supreme Leader Ali Khamenei declared that Iran would take “great strides in deepening religious faith and advancing scientific knowledge” – a statement widely interpreted as reaffirming Iran’s ideological commitment to regional influence, including its nuclear and ballistic missile programs.

An internal document leaked from Kataib Hezbollah appeared to confirm preparations for “escalation – either internally or externally.” Analysts believe the leak was deliberate, part of a coordinated campaign to send a message to both Baghdad and Washington amid shifting geopolitical dynamics.

A senior Coordination Framework leader acknowledged that the US stance was becoming increasingly aggressive.

“Washington is playing brinkmanship,” he said. “This isn’t just about the factions anymore – the entire ruling coalition is under pressure.”

US Pushback on PMF Law Raises Stakes

Tensions rose sharply in late July after US Senator Marco Rubio warned that a proposed Iraqi law formalizing the PMF would entrench Iranian influence. During a call with Sudani, Rubio voiced concerns about legitimizing militias the US deems a threat.

Days later, acting US Ambassador Steven Fagin told deputy parliament speaker Mohsen Al-Mandalawi that the law would “empower terrorist groups.” On August 5, State Department spokesperson Tammy Bruce described the legislation as a “hostile act” that could trigger harsh sanctions.

The Coordination Framework official admitted US pressure could become “suffocating,” especially as Washington appears to treat the Iraqi political system as a battlefield where some actors have become unacceptable.

Najaf Reemerges as a Counterweight

As Iran struggles with the fallout from its confrontation with Israel and a weakened proxy network post-October 7, the Najaf religious establishment has quietly regained influence in Baghdad. Sources close to the clerical leadership said Najaf views the current trajectory as dangerous for Iraq’s Shiites.

A senior cleric close to Sistani’s office said the religious leadership believes “the fate of Iraq’s Shiites should not be tied to rogue militias,” especially amid fears of renewed ISIS activity spilling over from Syria.

On July 17, Sistani’s representative, Abdul Mahdi al-Karbalai, appeared publicly for the first time in five years, calling for an end to militia activity and stronger state institutions.

According to officials familiar with behind-the-scenes discussions, a senior government figure met Karbalai shortly after the speech and was given a clear message: disarmament of militias and PMF integration must proceed in a way that respects fighters’ dignity and protects their livelihoods.

The message also included fiscal warnings – urging the government to curb chaotic spending and rethink Iraq’s foreign alignments to shield the country from external shocks.

From Soleimani to Sistani: Power Shifts in Baghdad

For years, key decisions in Baghdad were shaped by visits from Qasem Soleimani, the late Quds Force commander. But one Coordination Framework leader noted that the balance of power has shifted.

“Today, those kinds of strategic meetings are happening between Najaf and Baghdad – not Tehran,” he said.

He added that while Iran is desperate to retain its Iraqi foothold amid setbacks in its nuclear program, Najaf’s growing assertiveness is changing the rules of the game.

Sudani Under Pressure to Act

Caught between American opposition, Iranian expectations, and Najaf’s reform push, Sudani faces a narrowing path. His political survival may depend on how he handles the future of the PMF – a sensitive issue with no easy solutions.

Sources involved in high-level discussions say the US recognizes the risks of disbanding tens of thousands of fighters, many of whom were instrumental in the fight against ISIS. But Najaf insists that Iraq must not delay legal and institutional reform any longer.

“This is a historic responsibility,” one clerical source said. “If political leaders fail to act, the consequences will be severe.”

Analysts warn the PMF file has become a political time bomb ahead of elections. As Sudani weighs his next move, even his allies admit he must navigate a shifting regional landscape – or risk not just his office, but the future of Iraq’s post-2003 political order.



Lebanon Central Bank Says New Audit to Scrutinize Transactions for Graft

A view shows Lebanon's Central Bank building in Beirut, Lebanon August 25, 2023. (Reuters)
A view shows Lebanon's Central Bank building in Beirut, Lebanon August 25, 2023. (Reuters)
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Lebanon Central Bank Says New Audit to Scrutinize Transactions for Graft

A view shows Lebanon's Central Bank building in Beirut, Lebanon August 25, 2023. (Reuters)
A view shows Lebanon's Central Bank building in Beirut, Lebanon August 25, 2023. (Reuters)

Lebanon's central bank said Wednesday that an outside firm had begun a forensic audit into past transactions linked to its foreign assets, scrutinizing them for evidence of graft in the wake of the country's economic collapse.

The move is part of measures the institution has taken to improve oversight, steps that have also resulted in the arrest of the body's former governor, Riad Salameh.

A forensic audit has also been a key demand of the international community and the International Monetary Fund as Lebanon seeks bailout funds after the economic crash, which began in 2019.

The central bank said Wednesday that on August 17, the New York-based Alvarez & Marsal began the forensic audit of "selected transactions", covering the period from October 2019 to the end of 2023.

The audit includes "transactions related to the central bank's foreign assets, including subsidy programs for essential goods and materials" as well as other transfers, it said.

In May, the central bank had said that the audit aimed to verify that payments and transfers "were executed pursuant to proper authorizations and approvals", and that funds "were used for their intended purposes, without any violation, misuse, or misappropriation".

In 2020, Alvarez & Marsal had launched an audit of the central bank but later halted work after the body failed to hand over necessary data.

The firm resumed that audit the following year, and its preliminary report in 2023 painted a damning picture of the institution under long-serving former governor Salameh.

Salameh, who headed the bank from 1993 to July 2023, is widely viewed as a key culprit in the country's dramatic economic crash and is accused of having amassed a fortune during his time in the job.

He has faced numerous accusations including embezzlement and tax evasion in probes in Lebanon and abroad but has consistently denied any wrongdoing, insisting he is being made a "scapegoat" for the economic collapse.

He was arrested in September 2024 and charged with offenses including the alleged embezzlement of $44 million from the central bank, but was released a year later after posting record bail of more than $14 million.

He was placed in custody again in July over accusations including embezzlement and illegal enrichment after a complaint lodged by the new central bank authorities.


Israel Ready to Remove Gaza Population if US Gives Approval, Says Minister

An Israeli military vehicle maneuvers in Gaza, as seen from the Israeli side of the border, September 1, 2026. (Reuters)
An Israeli military vehicle maneuvers in Gaza, as seen from the Israeli side of the border, September 1, 2026. (Reuters)
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Israel Ready to Remove Gaza Population if US Gives Approval, Says Minister

An Israeli military vehicle maneuvers in Gaza, as seen from the Israeli side of the border, September 1, 2026. (Reuters)
An Israeli military vehicle maneuvers in Gaza, as seen from the Israeli side of the border, September 1, 2026. (Reuters)

Israel has plans ready to remove Palestinians from the Gaza Strip but is waiting for the United States to figure out where to take them, the defense minister said Wednesday.

"There is no real solution for Gaza in the end without this migration," Defense Minister Israel Katz told a conference hosted by Israeli news site Ynet and newspaper Yedioth Ahronoth.

The Israeli government "is organized and prepared to get them out -- by sea, by air, by every way possible", he said.

The US embassy referred requests for comment to the State Department in Washington.

US President Donald Trump, at the start of his second term, stunned much of the world by calling for all two million Palestinians to leave the Gaza Strip.

Trump spoke of developing the Mediterranean territory, devastated by Israeli bombardment since the October 7, 2023 attack by Hamas, into a luxury resort destination.

Trump walked back the idea following strong pushback including from Egypt, the only country other than Israel to border Gaza.

The proposal was also condemned by Palestinians themselves, for whom any effort to force them off their land would recall the "Nakba", or catastrophe -- their mass displacement during Israel's creation in 1948.

Announcing a Gaza war ceasefire in October, Trump laid out 20 points for the territory that included no forced displacement.

Katz, known for his outspoken remarks, said that Trump had only "frozen" the idea as he looks for countries to take in Palestinians.

"The plan hasn't been cancelled; it is being discussed all the time, even now, and I think there is no other solution for everyone's good," he said.

"But for it to happen, we need the US. When will we get their approval? Whenever it becomes clear that Hamas is not meeting its obligations" under the ceasefire, he said.

Katz, without citing his source, said 80 percent of people in Gaza wanted to leave but that Hamas was preventing them.

Forced displacement of civilians in occupied territory is considered a war crime under the Geneva Conventions.

The International Criminal Court has issued arrest warrants for Prime Minister Benjamin Netanyahu and Katz's predecessor Yoav Gallant over alleged war crimes, which both Israel and the United States deny.

Israeli attacks have already internally displaced the vast majority of Gaza's people following the unprecedented Hamas attack, which killed 1,221 people, according to official Israeli figures.

Israel's offensive has since claimed 73,470 lives in Gaza, with more than 1,330 since the ceasefire, according to the Gaza health ministry, which operates under Hamas.


Netanyahu Says ‘We Are Not Retreating’ During Gaza Visit

Prime Minister Benjamin Netanyahu in Gaza on Wednesday. (Netanyahu on X)
Prime Minister Benjamin Netanyahu in Gaza on Wednesday. (Netanyahu on X)
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Netanyahu Says ‘We Are Not Retreating’ During Gaza Visit

Prime Minister Benjamin Netanyahu in Gaza on Wednesday. (Netanyahu on X)
Prime Minister Benjamin Netanyahu in Gaza on Wednesday. (Netanyahu on X)

Prime Minister Benjamin Netanyahu on Wednesday visited Israeli forces in the Gaza Strip, where he vowed not to pull back troops despite a recent push by mediators to advance a US-backed ceasefire plan calling for their withdrawal.

It was the first time Netanyahu has visited the war-shattered territory since the ceasefire between Israel and Hamas came into effect in October 2025.

"We control the area. We are not retreating. We are staying on this line," Netanyahu said near the so-called Yellow Line, which demarcates the areas under Hamas and Israeli military control.

"We control 60 percent of the Strip, and we are not stopping, because we are eliminating the terrorists who threaten us, day in and day out."

Israel has kept striking the Gaza Strip and its forces have made further inroads despite the US-brokered ceasefire, insisting it must eliminate threats from Hamas, which led the unprecedented October 7, 2023 attack against Israel.

International appeals to move to the next stages of the US-led peace plan have not stopped Israel targeting Palestinians it says are militants.

Netanyahu, facing tight elections in October, last month rejected a proposal for advancing to the next stage of the plan after Hamas said it had agreed to hand over its weapons.

The Israeli premier has vowed no military pullout until the Palestinian movement is "genuinely" disarmed.

On Tuesday, Israel said its forces and a Palestinian anti-Hamas militia captured the head of Hamas's internal security apparatus during a ground operation in Gaza City that Palestinian health officials said killed four people.

Hamas's Interior Ministry identified the man as Muein al-Arabid, and said he was an "officer in the internal security service", but did not mention whether he was its chief.

"We are doing everything to reach our goal -- disarming Hamas and demilitarizing Gaza. Gaza will no longer pose a threat to Israel," Netanyahu said Wednesday, adding that "there is still work left to complete -- and we will complete it".

Israel's defense minister on Wednesday said the country had plans to remove Palestinians from the Gaza Strip but was waiting for the United States to figure out where to take them.

"There is no real solution for Gaza in the end without this migration," Defense Minister Israel Katz told a conference hosted by Israeli news site Ynet and newspaper Yedioth Ahronoth.

The Israeli government "is organized and prepared to get them out -- by sea, by air, by every way possible", he said.

Similar suggestions in the past that Gazans could be displaced from the territory entirely have drawn international outrage, as well as condemnation from Palestinians themselves.

Announcing the Gaza war ceasefire in October, Trump laid out 20 points for the territory that included no forced displacement.

Forced displacement of civilians in occupied territory is considered a war crime under the Geneva Conventions.

Israeli operations in Gaza have killed at least 1,334 people since the ceasefire came into effect, according to the Palestinian territory's health ministry, which also operates under Hamas authority and whose figures are considered reliable by the United Nations.

The Israeli army has reported five deaths in its ranks over the same period, as well as the death of one civilian contractor.