Trump announces a "large-scale" oil deal with Iraq; Iraqi Prime Minister: U.S. troops must withdraw by the end of September.

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Iraqi Prime Minister Arrives at the White House for Meeting with Trump.

On Tuesday local time, U.S. President Trump met with Iraqi Prime Minister Ali al-Zaidi at the White House and announced that the two sides would soon reach a batch of "large-scale" oil agreements, adding that the U.S. no longer intends to maintain a military presence in Iraq.

Trump described the agreements as "huge, among the largest in history," with the announcement expected "this week or next." This signals that, after more than two decades of military entanglement, the U.S. and Iraq are officially entering a new bilateral relationship centered on energy investment.

Meanwhile, according to CCTV, Iraqi Prime Minister Zaidi stated during his meeting with President Trump that, U.S. troops must withdraw from Iraq by September 30 this year. Reports say that, at that time, American companies will enter Iraq simultaneously.

The backdrop for this summit is complex: the U.S. and Iraq are mediating tensions in the Strait of Hormuz and the Persian Gulf, while Iraq faces multiple pressures including disputes over OPEC quotas and the influence of Iran.

Analysts believe that if the agreement comes to fruition, it could provide the Iraqi government with much-needed investment funds, as well as accelerate the shift in U.S. strategic focus in the Middle East from military to economic fields.

Huge Scale of Oil Agreements, Details Pending Disclosure

Trump told the media in the Oval Office:

Iraq has tremendous potential due to its oil and other resources. We will create a large number of jobs for both countries, extract a significant amount of oil, mostly by American companies.

He previewed that the announcement would be released "this week or next," but did not reveal specifics on parties involved, oil fields, or contractual terms.

This visit holds significant political meaning for Zaidi. Since taking office, he has promoted attracting American capital to boost Iraq’s oil and gas production capacity, and previously, an Iraqi government spokesman proposed the idea of establishing a fund based on oil exports to the U.S., dedicated to attracting American investment.

Zaidi stated at the White House:

On September 30, U.S. troops will leave Iraq, and American companies will enter Iraq. Our relationship is now based on economic cooperation, not military ties.

Since the U.S. and Israel’s airstrikes on Iran at the end of February this year, and Iran’s de facto closure of the Strait of Hormuz, Iraq has been one of the Gulf countries most financially harmed. By introducing U.S. capital and opening up export channels to the U.S., Iraq hopes to mitigate the impact of the strait’s closure.

Disputes between Iraq and OPEC

On OPEC, Zaidi explicitly stated his demand for a larger quota.

Wallstreetcn reports that OPEC has gradually relaxed output allowances for member countries during the war, but Iraq believes the current quotas still do not reflect its actual capacity or financial needs.

On June 25, Iraq issued a threat to OPEC: either increase its production quota or it may withdraw. This came about two months after the UAE’s exit. Although the Iraqi side later denied plans to withdraw, these signals of discord may have been a negotiating tactic, highlighting growing centrifugal forces within OPEC.

Iraqi Prime Minister Zaidi stated that Iraq suffered more than $400 billion in losses fighting "Islamic State," and emphasized:

I have a responsibility to bring displaced Iraqis home. That is why I am demanding a fair share within OPEC.

Regarding Iraq’s pressure on OPEC, Trump did not respond directly, only expressing support for Zaidi personally and said, "As for OPEC, that’s his decision."

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