What's New in Iraq: Fear and Deals September 22, PM

As you know, I'm traveling this week.  It takes me more than a day, because I fly to the International gateway, spend a night, and then board the international flight.  Here are critical updates for IQD investors.    

The bottom line is that Iran-backed militants in Iraq are fearful that the U.S. will attack them, now that they have been designated as terrorist groups. 

The U.S. Escalates

• The United States has formally designated four Iranian-aligned Iraqi militias as Foreign Terrorist Organizations (FTOs). (AL-Monitor)

  • The groups are Harakat al-Nujaba, Kata’ib Sayyid al-Shuhada, Harakat Ansar Allah al-Awfiya, and Kata’ib al-Imam Ali. 

  • These groups were already under sanctions or special designation before, but this new classification brings tougher penalties and greater legal risks for anyone aiding them. 

  • The U.S. government says these groups have carried out attacks on American or coalition facilities in Iraq, and often try to hide their connections by using proxy groups. 

Russia’s Visit: Promises Without Full Delivery

• Russian Security Council Secretary Sergei Shoigu visited Baghdad in a high-stakes diplomatic moment. (Kurdistan24 - کوردستان 24)

• In meetings with Iraqi leaders, Shoigu discussed expanded military cooperation—including air-defense solutions and broader technical military support. 

• However, the much-anticipated deal to buy S-400 air defense systems didn’t happen. Talks focused more on existing debts, technical cooperation, and future memorandums.

Iraq Caught in the Middle

• Baghdad is walking a tightrope. On one side, pressure from Washington to crack down on these militias, either by disarming them or fully integrating them into the state security framework. (Iraqi News)

• On the other side, domestic politics, militia influence, security concerns, and regional alignments make any outright disarmament or absorption extremely delicate. The militias reject giving up their weapons. (Iraqi News)

Tactics, Reactions, and Fallout

• Factions are choosing caution. Some have evacuated or partially vacated their headquarters, cut back communications, and increased operational security—they feel exposed and vulnerable. (Iraqi News)

• Government proposals have resurfaced: close the official offices of the designated militias; transfer their camps to the Iraqi Army; incorporate their fighters under formal command. But those proposals meet strong resistance. (Iraqi News)

• Baghdad's balancing act with Russia continues. While Shoigu’s visit hinted at deeper cooperation, Iraq has denied some of the more alarming rumors—such as forces crossing into Syria under vague pretexts. (Profile News)

What It All Means

• The U.S. designation makes these militias more legally and financially isolated. Any country or organization that supports them risks sanctions or diplomatic fallout.

• Without the S-400 deal, Iraq remains exposed to air threat vectors, especially with militias fearing U.S./Israeli strikes.

• Internal pressure in Iraq is mounting: from citizens demanding that militias operate under state control, from international actors pushing for accountability, and from militias themselves, who feel squeezed.

• The possibility of confrontation—air strikes, raids, legal actions—looms larger.