The year 2023 started promising in Iraq. The country had endured two decades of violence, terrorism and severe political and sectarian divisions.
Many observers believed that 2023 would be a smooth year for Prime Minister Mohammed Shia al-Sudani, who came to office in October 2022.
At the start of the year, it appeared that Iraq would return to being a “normal state” and return to its Arab fold. This was emphasized by the visits carried out by Sudani to regional countries.
Iraq also succeeded – for the first time in 42 years – in hosting the 25th Arabian Gulf Cup in Basra. Iraq capped off its hosting success by winning the tournament for the fourth time.
A majority of observers and sports analysts agreed that the organization was perfect. Fans from across the Gulf flocked to Iraq where an ambiance of fraternity prevailed. This led Iraqis to believe that their country was on the road to recovery.
This cautious optimism was followed with the central bank raising the value of the dinar against the dollar to 1,320 from 1,460. The previous government had lowered the value of the dinar, causing a fluctuations in the market and raising the prices of goods.
However, the rise in the value did little to create positive change in the market. The exchange rate continued to be imbalanced, with the dinar sometimes being exchanged for 1,800 to the dollar, dashing the initial optimism.
Oil crisis
In March, Iraq halted crude exports from the semi-autonomous Kurdistan region and northern Kirkuk fields after the country won a longstanding arbitration case against Türkiye.
The decision to stop shipments of 450,000 barrels per day (bpd) of crude relates to a case from 2014, when Baghdad claimed that Türkiye violated a joint agreement by allowing the Kurdistan Regional Government (KRG) to export oil through a pipeline to the Turkish port of Ceyhan.
In May, the federal court ruled to annul the oil and gas law in the Kurdistan Region, reigniting a political crisis between Baghdad and Erbil that had been hoping to overcome their disputes through the formation of the “state management” coalition of Shiites and Kurds.
The coalition had helped in securing votes of confidence for Sudani’s government.
In spite of the emerging differences, the federal parliament succeeded in June in approving the budget for 2023 and the next two years – in a first since 2003. Previously, the parliament had voted on a budget one year at a time.
June also witnessed the crisis over a Christian Iraqi immigrant in Sweden setting fire to the holy Quran. The event sparked widespread popular outrage in Iraq and a political crisis with Sweden. The crisis deepened after supporters of influential cleric Moqtada al-Sadr stormed the Swedish embassy in Baghdad and set on fire.
In July, an armed group abducted an Israeli researcher, who also holds a Russian passport, in Baghdad. Her fate remains unknown. Israeli PM Benjamin Netanyahu has accused a pro-Iran faction of being behind her abduction.
In August, local media reported that the United States was increasing the number of its forces in Iraq. They also reported that it was amassing its forces on the Iraqi-Syrian border. Speculation was rife that Washington was planning on launching military operations against pro-Iran groups in Iraq.
Baghdad and Washington denied the claims.
In September, tragedy struck the Nineveh province when a massive fire ripped through a wedding hall, killing at least 120 people and wounding dozens.
Gaza fallout
In October, Iraq teetered on the edge with the eruption of the conflict in Gaza. Even though they are miles apart, pro-Iran factions began launching rocket attacks on American bases in Iraq and Syria. The attacks threatened to dash all progress Iraq has made in establishing relative security on its territories.
In November, Iraq was plunged in a major political crisis when the Federal Supreme Court decided to terminate Speaker Mohammed al-Halbousi’s membership in Parliament over allegations of extortion and fraud.
That same month, the US launched rocket attacks against the bases and headquarters of armed factions in the Babel province, western Baghdad, and Kirkuk, leaving at least 20 militants dead.
The move was in retaliation to attacks launched by the factions against the Ain al-Asad base in Anbar province and Harir base in Erbil in the Kurdistan Region.
The attacks put pressure on Sudani to crack down on factions that are firing at the US forces.
In December, the government announced that it had arrested several militants involved in the attacks.
Iraq closed out 2023 by holding provincial council elections for the first time in a decade.
