Iraq Situation Report June 17-23, 2020

By Brandon Wallace and Katherine Lawlor

Key Takeaway: Converging challenges to the Iraqi state threaten to deny Prime Minister Mustafa al-Kadhimi the political support he needs to improve Iraq’s security and economy. Kadhimi must improve domestic stability in areas like service provision, fiscal policy, and security in order to secure leverage for the second round of the US-Iraq Strategic Dialogue scheduled for July 2020. Kadhimi is facing increasing anti-US attacks by Iran’s Iraqi proxies, a surge of COVID-19 cases, and increasing opposition to the financial reforms necessary to keep the Iraqi economy afloat. Iranian officials are pressuring Kadhimi in high level meetings to accept key Iranian demands that support Iran’s objectives in Iraq, such as purchasing essential goods inside Iraq with foreign currency to circumvent the US-imposed maximum pressure sanctions.

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