Iraq at a Turning Point: Political Deadlock, Oil Power, Water Crisis, and What Comes Next

 

Here’s a summary of the latest news on Iraq (December 2025)—covering political developments, economy, security, environment, and international relations:

Political Deadlock After Elections

Iraq is navigating a political stalemate more than a month after its November 2025 parliamentary elections, with coalition talks dragging on as parties try to form a government. No single bloc won a majority, and negotiations remain tense among Shia, Sunni, Kurdish, and militia-aligned factions. The fragmented parliament reflects broader challenges ahead, including corruption, economic issues, and the influence of armed groups in politics. (AP News)

Key points:

• Prime Minister Mohammed Shia al-Sudani’s coalition won the most seats but still lacks a governing majority. (Wikipedia)

• Powerful armed and militia-linked groups secured significant representation in parliament, complicating efforts to build a stable government. (AP News)

• Talks between rival blocs continue, with outcomes likely shaping Iraq’s internal and external policies into 2026. (The Times of India)

Economy & Energy Sector

The Iraqi economy remains heavily dependent on oil, and recent data shows Iraq as one of the top suppliers of crude oil to the U.S., underscoring its importance in global energy markets. (شفق نيوز)

However, broader economic pressures persist:

• Imports are rising, and the national budget faces strain from persistent fiscal gaps. (Iraqi News)

• Discussions are ongoing with other nations (e.g., Pakistan) to boost trade and bilateral cooperation. (Dawn)

Environment & Water Crisis

Iraq is confronting a serious water crisis that is threatening agriculture and food security:

• Wheat production—central to Iraq’s food strategy—is sharply down due to low water levels in the Tigris and Euphrates rivers, impacting harvests and raising the need for imports. (Reuters)

• Pollution, reduced rainfall, and upstream dam projects by neighboring countries are contributing to declining river flow and environmental degradation. (The Guardian)

This ecological stress not only affects farmers’ livelihoods but also exacerbates rural displacement and heightens social tension.

Security & Regional Tensions

Security dynamics remain complex:

• Iraq has denied direct involvement in some U.S. military operations in neighboring Syria, even as U.S. forces conducted counter-ISIS action there. (Anadolu Ajansı)

• ISIS remains a persistent threat regionally, with global attacks highlighting the group’s continued influence beyond territorial defeat. (TIME)

• Domestic armed groups and militia factions are actively engaged in political and territorial influence, keeping Iraq’s security environment delicate. (شفق نيوز)

International Relations & Diplomacy

Iraq is active on the international diplomatic stage:

• Former Iraqi President Barham Salih was elected head of the U.N. High Commissioner for Refugees (UNHCR)—the first Middle Eastern leader to hold this role in decades. (AP News)

• Leadership efforts continue to balance relationships with global powers, including the U.S., neighboring states, and regional blocs. (Security Council Report)

Additionally:

• High-level visits and talks—such as with Pakistan—aim to strengthen cooperation and economic ties. (Dawn)

 Other Developments

• Social news like educational programs for inmates and football league results continue domestically. (Iraqi News)

• Oil infrastructure and production swings (e.g., at West Qurna 2 and Khor Mor gas fields) show ongoing efforts to stabilize energy output after disruptions. (Reuters)