The United States military completed the withdrawal of all American troops from Iraq on Wednesday, ending a 12-year mission to fight the Islamic State group. President Donald Trump hailed the withdrawal as a victory for both countries, calling it the end of 'a very expensive excursion into Hell.'
The United States has completed its military withdrawal from Iraq after more than two decades, with Baghdad declaring four days of national holidays called 'Sovereignty Days' to mark the exit. The withdrawal raises questions about Iraq's future security amid concerns over militia influence and Iran's growing role in the country.
Four major Iraqi airports including Baghdad, Najaf, Erbil, and Sulaimaniyah have halted all flights to and from Iran in response to expanded US sanctions targeting Iran's aviation sector. Iran warned that flight in the region must be "free for all, or for no one," while Iraq seeks exemptions from the sanctions.
Iranian flights to Baghdad and Muscat have been canceled after the United States threatened sanctions against airports servicing Iranian airlines, part of a broader pressure campaign over the Strait of Hormuz. Iraq ordered its civil aviation authority to suspend Iranian flights starting Wednesday, while Oman also ceased accepting Iranian aircraft.
Saudi Arabia reported drones launched from Iraq struck its East-West oil pipeline, leading to its temporary closure. Iraq dismissed a military commander and ordered an investigation after confirming the attacks originated from Iraqi territory.
Saudi Arabia is confronting a multi-front security crisis as Houthi rebels advance toward Red Sea shipping routes, Iraqi militias force the closure of a major oil pipeline through drone attacks, and Iran continues disrupting the Strait of Hormuz. The escalation is testing the kingdom's national security and economic resilience.
Saudi Arabia and the United States conducted joint strikes against Iran-backed militias in Iraq in July after drone attacks on Saudi oil facilities, which were claimed by Yemen's Houthi rebels. Officials warn that Iran is forging a new network of proxy forces to threaten US allies in the Gulf region.
Iran has granted permission for several Iraqi oil tankers to navigate through the strategic Strait of Hormuz, according to state media reports. The move comes amid ongoing disruptions and tensions in the region.
Saudi officials report intelligence indicating multiple coordinated attacks could occur within 48 hours from both Yemeni Houthis and Iraqi militia groups, targeting civilian infrastructure including ports, airports, and energy facilities. At least 11 civilians have already been wounded in a Houthi attack.
The U.S. Treasury Department removed counter-terrorism sanctions from Iraq's Fly Baghdad Airlines and two of its aircraft that were imposed in 2024 over alleged links to Iran's Islamic Revolutionary Guard Corps Quds Force, citing changes in the airline's behavior. The airline's owner, Basheer Al-Shabbani, remains under active U.S. sanctions.
Turkey and Iraq have signed a one-year agreement to maintain operations of the Iraq-Turkey crude oil pipeline to Ceyhan port, with capacity for 750,000 barrels per day. The deal provides Baghdad with a critical northern export route as ongoing tensions continue to disrupt shipping through the Strait of Hormuz.
Yemen's Iran-aligned Houthi forces attacked Saudi Arabia from Iraqi territory this week in coordination with Iraqi armed groups, according to Saudi and regional officials. The development signals increased operational coordination among Iran-aligned militias across the region.
Saudi Arabia has publicly entered the U.S.-Iran conflict by conducting strikes against Tehran-backed proxies in Iraq, abandoning months of efforts to remain neutral despite Iranian drone attacks on its oil infrastructure. The move represents a significant escalation and shift in Saudi strategy as the kingdom struggles to balance its Vision 2030 economic development plans with regional security pressures.
The United States and Saudi Arabia carried out coordinated military strikes against Iran-aligned militia positions in Iraq, killing at least 8-10 members of the Popular Mobilisation Forces. The strikes followed Saudi interception of drones targeting oil facilities in eastern Saudi Arabia.
The United States and Iran halted their mutual attacks over the weekend after 13 consecutive nights of strikes, creating space for diplomatic negotiations. However, Saudi Arabia, Jordan, and Iraq reported drone attacks on Monday, suggesting Iran may be testing the fragile pause while oil prices tumbled on hopes for de-escalation.
Iran's Islamic Revolutionary Guard Corps struck a US special operations command center at al-Tanf in Syria on July 17, 2026, the first time Iran has attacked Syrian territory since the war began. The strike, framed as retaliation for the killing of seven Iranian soldiers in Iranshahr, marked the 11th wave of Operation Nasr-2. The US simultaneously launched its sixth consecutive night of airstrikes against Iran, targeting bridges, airports, and ports, while enforcing a naval blockade of the Strait of Hormuz.
Iraqi authorities have confiscated 375 kilograms of gold and 69 billion dinars in assets as part of a sweeping anti-corruption investigation targeting former deputy oil minister and other officials. The Kurdistan Regional Government cooperated by handing over 358 kilograms of confiscated gold to federal authorities.
Iran is conducting an elaborate multi-day funeral for Supreme Leader Ayatollah Ali Khamenei, who was killed four months ago at the outset of a US-Israeli war on Iran. The ceremonies, spanning five cities across Iran and Iraq from July 3-9, coincide with the reappearance of Revolutionary Guard General Ahmad Vahidi, who had been in hiding.
Iraq, OPEC's second-largest producer and founding member, has warned it may exit the oil cartel if its production quota is not increased, citing economic strain from regional conflicts and recent disruptions. The threat comes after the UAE's departure from the organization.
Qatar and Oman are mediating talks between Iran, Iraq, and Gulf Arab states over the administration of the Strait of Hormuz, as US Secretary of State Marco Rubio firmly states Iran cannot charge tolls for vessel transit through the strategic waterway.
The 2026 FIFA World Cup group stage began with star performances from football's biggest names: Lionel Messi scored a hat-trick as Argentina defeated Algeria 3-0, Kylian Mbappé netted twice in France's 3-1 win over Senegal, and Erling Haaland scored two goals on his World Cup debut as Norway beat Iraq 4-1.
Omar Artan, who was set to become the first Somali referee to officiate at a World Cup, was denied entry to the United States after an 11-hour immigration interview in Miami despite holding proper documentation and visa. FIFA confirmed he will not work at the tournament, with reports indicating two Iraqi national team members also faced detention.
Two of Iraq's most powerful Iran-backed militias have announced they will begin handing over their weapons to Iraqi authorities, even as a senior Iranian IRGC commander boasted that Iran's military production facilities remain completely hidden from adversaries including the US and Israel.
A drone attack caused a fire near the United Arab Emirates' Barakah Nuclear Energy Plant, prompting investigations and power restoration efforts. The incident coincides with Saudi Arabia intercepting drones from Iraqi airspace and ongoing tensions between the US and Iran over nuclear negotiations.
Israel established a clandestine military outpost in Iraq's western desert to support its air operations against Iran and conducted airstrikes against Iraqi troops who nearly discovered the facility, according to a Wall Street Journal report citing U.S. officials and people familiar with the matter.
The US Treasury has imposed sanctions on Iraq's Deputy Oil Minister Ali Maarij al-Bahadly and leaders of pro-Iran militias, accusing them of facilitating Iranian oil sales in violation of US sanctions. The move represents continued American pressure on Baghdad to distance itself from Tehran and crack down on Iran-backed armed groups.
Iraqi President tasked businessman and political outsider Ali al-Zaidi with forming a new government after months of gridlock. The appointment came after Trump opposed the nomination of pro-Iran former PM al-Maliki.
American freelance journalist Shelly Kittleson was abducted in broad daylight in Baghdad, with US officials stating a suspect has ties to Iran-backed militia group Kataib Hezbollah. The State Department says it is working to ensure her release as soon as possible.
Iranian-backed Houthi rebels fired a missile toward Israel that was intercepted, marking their first direct involvement in the month-old US-Israeli war against Iran. The entry of the Houthis threatens to further expand the regional conflict and disrupt global shipping.
