Iraq PM Calls for Investing in High Oil Prices to Support Economic Reform

Students gather in a schoolyard in Sulaymaniyah in the Kurdistan Region on Sunday, which marked the first day they were opened after a closure forced by the COVID-19 pandemic. (AFP)
Students gather in a schoolyard in Sulaymaniyah in the Kurdistan Region on Sunday, which marked the first day they were opened after a closure forced by the COVID-19 pandemic. (AFP)
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Iraq PM Calls for Investing in High Oil Prices to Support Economic Reform

Students gather in a schoolyard in Sulaymaniyah in the Kurdistan Region on Sunday, which marked the first day they were opened after a closure forced by the COVID-19 pandemic. (AFP)
Students gather in a schoolyard in Sulaymaniyah in the Kurdistan Region on Sunday, which marked the first day they were opened after a closure forced by the COVID-19 pandemic. (AFP)

Iraq’s Prime Minister Mustafa al-Kadhimi underscored the importance of investing in high oil prices to help ease economic burdens on the people.

During a meeting with the parliament’s finance committee on Sunday, Kadhimi said the draft budget submitted by the government aims to achieve economic and financial reform and support vital sectors to help address the majority of problems suffered by the country’s economy for decades.

According to a statement by his media office, the premier stressed the need to activate automation mechanisms, digital trading and the Federal Service Council’s role, in line with the economic reform plan.

He further highlighted the significance of the fair distribution of wealth among all Iraqi regions, in line with the constitution.

He said the country was facing several challenges, adding: “We have been working hard to reform the current situation and put the country’s economy on the right track, in implementation of the government’s agenda that was passed by the House of Representatives.”

The financial committee has held more than 300 meetings within a month with several ministers and senior officials in various sectors to decide on the frameworks that would balance between spending and revenues.

“The committee handed over a copy of the amendments made on the budget to the government,” the statement added, noting that they cover reducing expenditures and maximizing revenues in a practical manner.

The committee stressed it worked on supporting the private sector and taking bold steps to address and support industrial, agricultural and real estate banks to achieve comprehensive development in these sectors.

Meanwhile, disagreements are still ongoing between the federal government in Baghdad and the Kurdistan Regional Government (KRG) on the Kurds’ share in the budget and the mechanism for implementing the oil in exchange for salaries deal.

Deputy Prime Minister of the Kurdistan Region Qubad Talabani said on Sunday that the region is ready to conclude a deal with the federal government to implement all the obligations, provided that the deal is fair and enforceable.

The Kurdistan Region’s share in the federal government’s budget does not exceed five percent after the deduction of sovereign expenses, he noted.

Talabani called for re-establishing Iraqi state-oil marketer SOMO in a new way that guarantees the transparent management of selling and marketing oil, including the region’s oil.

“We have been in contact with Baghdad for nearly a year, and our current talks are different and numerous and focused on many issues,” he said.

Head of the Kurdistan Democratic Party’s (KDP) bloc in the Iraqi parliament Vian Sabri told Asharq Al-Awsat that negotiations will continue a final agreement on the region’s share is reached, according to the constitution and regulations.

“Our position is to support the region’s commitment to deliver 250,000 barrels of oil per day to the federal government and half of the non-oil revenues.”

“In return, the federal government will commit to paying the region’s dues according to their legal deadlines,” she stressed.



Israeli Military Says it Struck 'Key' Hamas Figure in Lebanon's Tripoli

People gather near a damaged car after the Israeli military said in a statement that it struck a "key" figure from Palestinian militant group Hamas, in Ayrounieh, northern Lebanon July 8, 2025. REUTERS/Walid Saleh
People gather near a damaged car after the Israeli military said in a statement that it struck a "key" figure from Palestinian militant group Hamas, in Ayrounieh, northern Lebanon July 8, 2025. REUTERS/Walid Saleh
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Israeli Military Says it Struck 'Key' Hamas Figure in Lebanon's Tripoli

People gather near a damaged car after the Israeli military said in a statement that it struck a "key" figure from Palestinian militant group Hamas, in Ayrounieh, northern Lebanon July 8, 2025. REUTERS/Walid Saleh
People gather near a damaged car after the Israeli military said in a statement that it struck a "key" figure from Palestinian militant group Hamas, in Ayrounieh, northern Lebanon July 8, 2025. REUTERS/Walid Saleh

The Israeli military said on Tuesday it had struck "key" figure from Palestinian militant group Hamas near the northern Lebanese city of Tripoli, the first targeted killing in the area for several months.

In a statement, Israel's military did not give the identity of the targeted person. There was no immediate comment from Hamas.

Lebanese state media said a car had been hit near Tripoli and the health ministry reported two people were killed and three others wounded, without identifying them, Reuters reported.

Hamas and other Palestinian militant groups maintain a presence in various areas of Lebanon, mostly in camps that have housed displaced Palestinians for decades.

Since Hamas' cross-border attack from the Gaza Strip into southern Israel in 2023, Israel has carried out targeted strikes on Lebanese armed group Hezbollah as well as members of Palestinian factions in Lebanon.

Hamas' deputy chief was killed in an Israeli airstrike on Beirut's southern suburbs in early 2024, and other strikes hit Palestinian camps in northern Lebanon.

A US-brokered ceasefire last year ended the conflict between Hezbollah and Israel, though Israel has continued to carry out strikes on what it says are Hezbollah arms depots and fighters, mostly in southern Lebanon.

Tuesday's strike near Tripoli was the first time a targeted assassination had taken place in the area since the truce.

Meanwhile, US envoy Thomas Barrack continued a two-day visit to Lebanon to discuss disarming Hezbollah and other militant groups.