Iraq's al-Zaidi Ends 7-Day US Visit, Positioning Baghdad Between Trump and Tehran
Updated
Updated · Asia Times · Jul 23
Iraq's al-Zaidi Ends 7-Day US Visit, Positioning Baghdad Between Trump and Tehran
3 articles · Updated · Asia Times · Jul 23
Summary
July 19 marked the end of Ali al-Zaidi’s weeklong US trip, where the Iraqi prime minister met President Donald Trump and pitched Iraq as a partner for investment, energy and regional diplomacy.
Houston meetings with US energy executives and a high-level business summit underscored Baghdad’s push to win foreign capital while broadening ties with Washington beyond counterterrorism and military stabilization.
Tehran is expected to be al-Zaidi’s next stop, followed by Qatar, Saudi Arabia, Turkey and Syria, as Iraq tries to preserve ties with Iran even amid renewed US-Iran confrontation and Strait of Hormuz disruptions.
Baghdad’s appeal has risen as Islamic State has been degraded, Assad’s Tehran-aligned regime has fallen in Syria and Iran’s regional proxies have weakened, making Iraq a more valuable diplomatic and commercial hub.
That strategy still hinges on stronger state control at home, with Iran-aligned militias, corruption and fragmented governance threatening Iraq’s ability to turn outside interest into durable sovereignty and growth.
Can Iraq's new leader rein in Iran-backed militias to protect $200 billion in new US investment deals?
Is Iraq a genuine bridge for peace between the US and Iran or the next battleground in a widening war?
Can Iraq’s ambitious new pipelines bypass the Hormuz chokepoint and rescue a global economy in crisis?
Al-Zaidi’s 2026 Gamble: Iraq’s $60 Billion Pivot Between US Investment and Iranian Pressure
Overview
In July 2026, just two months after taking office, Iraqi Prime Minister Ali al-Zaidi launched a high-stakes diplomatic tour to Washington and Tehran. Facing escalating regional tensions and a severe economic crisis, al-Zaidi aimed to secure Iraq’s economic future and stability by balancing relations with both the United States and Iran. His efforts focused on attracting foreign investment, especially from the US, while maintaining Iraq’s historical ties with Iran. This delicate balancing act was crucial to prevent Iraq from being further drawn into the ongoing US-Iran conflict and to address the country’s urgent economic and security challenges.