Barrack Pushes Baghdad and Erbil Toward Oil Dispute Settlement

Kurdistan Region Prime Minister Masrour Barzani receives US envoy Tom Barrack in Erbil on June 16, 2026 (Government Media)
Kurdistan Region Prime Minister Masrour Barzani receives US envoy Tom Barrack in Erbil on June 16, 2026 (Government Media)
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Barrack Pushes Baghdad and Erbil Toward Oil Dispute Settlement

Kurdistan Region Prime Minister Masrour Barzani receives US envoy Tom Barrack in Erbil on June 16, 2026 (Government Media)
Kurdistan Region Prime Minister Masrour Barzani receives US envoy Tom Barrack in Erbil on June 16, 2026 (Government Media)

Kurdish politicians say US envoy Tom Barrack discussed possible ways to resolve the long-running oil dispute with Baghdad during his visit to Erbil, the capital of Iraq's Kurdistan Region, last week. However, they ruled out the possibility that the country's severe financial crisis would lead to the passage of a permanent federal law regulating natural resources.

Since March 2007, when the federal government led by Nouri al-Maliki submitted the first draft of the legislation, successive parliamentary terms have failed to pass a law that was intended to define how natural resources are produced and revenues distributed. Instead, political forces have relied on fragile political understandings to manage the issue.

Discussion over the law resurfaced following Barrack's visit to Erbil on June 16, 2026, during which he held meetings with regional government officials and leaders of the two main Kurdish parties. Local platforms circulated reports suggesting that the US envoy was "optimistic about Prime Minister Ali Al-Zaidi's ability to resolve the traditional disputes with Erbil."

Former Kurdish member of the Iraqi parliament Majid Shankali told Asharq Al-Awsat that Barrack discussed strengthening US-Iraqi cooperation in the energy sector, both with Baghdad and Erbil, as well as modernizing the Kirkuk-Baniyas pipeline, through which Iraqi oil is transported to Syria and onward to the Mediterranean

Former lawmaker Mayada Al-Najjar said the oil dispute between Baghdad and Erbil has moved "from a stage of stagnation to one of serious negotiations."

Speaking to Asharq Al-Awsat, Al-Najjar said that "communications between Baghdad and Erbil have gained clear momentum in recent weeks, with exchanges of visits and meetings among senior officials focused on resuming oil exports, settling financial issues, and preparing the ground for the passage of an oil and gas law."

What Is the Root of the Dispute?

Observers tend to believe that political disagreements have always been the primary obstacle to passing the law. At the same time, disputes over the interpretation of constitutional provisions, including the powers of the Kurdistan Region, have remained unresolved in most political settlements.

The dispute continues over whether the Kurdistan Region has the right to contract directly with foreign companies and pursue independent oil projects, or whether the federal government is the sole authority empowered to do so under the constitution and existing laws. Sharp differences also persist regarding discovered oil fields and the nature of contracts signed, whether under service agreements or production-sharing arrangements.

The Kurdistan Region attempted to address the legal vacuumwhen its parliament passed a regional oil and gas law in August 2007. However, Iraq's Federal Supreme Court effectively nullified the legislation when it issued a ruling in February 2022 challenging its legal basis.

"There is no hope in the foreseeable future of passing an oil and gas law," Shankali said, citing "Baghdad's strong tendency to consolidate full centralized control over the region's oil resources."

Shankali, a member of the Kurdistan Democratic Party, said Prime Minister Ali Al-Zaidi "will not be able to pass an oil and gas law through the Iraqi parliament without an agreement among the political blocs represented in parliament." He expressed regret that "the current parliament has yet to reach a formula acceptable to Erbil, Baghdad, and the oil-producing provinces that would allow the law to be passed and finally end disputes that have persisted for more than 20 years."

He predicted that political forces would continue "managing the crisis, as before, through temporary agreements between the federal government and the regional government." That would mean maintaining the latest arrangement that led to the adoption of the three-year federal budget law during the government of Mohammed Shia Al-Sudani.

In June 2023, political forces in Baghdad, led by the Coordination Framework and the Kurdistan Democratic Party, agreed on a financial settlement under which the Kurdistan Region would deliver 250,000 barrels of oil per day after deducting the region's share for domestic consumption. The agreement also allowed Kirkuk crude to be transported through the Kurdistan pipeline to Türkiye's Ceyhan port, in exchange for the federal government's commitment to pay the region's share of the state budget.

"In the coming phase, this agreement could be further developed between Baghdad and Erbil, given all sides' desire to confront the severe financial crisis," Shankali said.

Masoud Barzani, with Mazloum Abdi beside him, during talks with US envoy Tom Barrack in Erbil (File photo: Kurdistan Democratic Party)

Positive Signs

Sobhi Al-Mandalawi, a member of the Kurdistan Democratic Party, pointed to what he described as "positive indicators" since Al-Zaidi assumed office as prime minister.

Speaking to Asharq Al-Awsat, Al-Mandalawi said that "the new Iraqi government moved early in its tenure to engage positively with the national and domestic environment, including contentious issues such as relations with Erbil." He added that "the Kurdistan Regional Government, led by Masrour Barzani, views these indicators positively."

However, Al-Mandalawi suggested that efforts to resolve disputes between the two governments may gather momentum under pressure from the international community, particularly the United States.

He stressed that the Kurdistan Democratic Party has consistently partnered with every new government in Baghdad in seeking the passage of an oil and gas law. Although he hopes the legislation can be approved during the current parliamentary term, he argued that "the same political forces that opposed a legislative settlement in the past will continue to use every means available to prevent the law from being passed."

Former lawmaker Mayada Al-Najjar said there are "encouraging signs" that the disputes could be resolved, reflected in growing cooperation between the two sides in both security and economic coordination.

In mid-June 2026, an Iraqi military delegation headed by Army Chief of Staff Lt. Gen. Abdul Amir Rashid Yarallah conducted meetings and field visits in Erbil, including inspections of several oil fields, to assess security conditions and discuss measures aimed at protecting facilities and personnel.

Despite political indicators suggesting Baghdad and Erbil are moving closer to resolving the oil dispute, Al-Najjar said any definitive progress should be measured by an official announcement of a final or comprehensive agreement between Kurdistan Democratic Party leader Masoud Barzani and Prime Minister Ali Al-Zaidi that would fully settle the oil and gas crisis.



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.