Iraqi PM Ziyadi Takes Office as Oil Exports Plunge 70% Amid US-Iran Rivalry

BAGHDAD, Iraq — Iraqi Prime Minister Ali Ziyadi has begun his tenure navigating the competing pressures of Washington and Tehran, according to an analysis by the Soufan Institute. The research center reported that tensions between the United States and Iran have severely constrained Iraq's oil sector, with exports declining by approximately 70 percent. Basra province produces roughly 3.3 million barrels per day, representing about two-thirds of Iraq's total oil exports. The Hormuz Strait's strategic significance as a transit route has meant that heightened regional tensions have directly affected Iraq's ability to move crude to international markets. Oil revenues in April dropped below $1 billion, compared with roughly $7 billion before the conflict, according to the report. Reuters, citing the analysis, noted that Ziyadi has sought to limit Iran-aligned militias' influence in government following warnings from the United States. Only Communications Minister Mustafa Send has ties to Hashd al-Shabi in the new cabinet. Three days after Ziyadi's appointment, armed groups launched drone attacks targeting Saudi Arabia and the United Arab Emirates, further complicating regional relations. The Soufan Institute also noted that Moqtada al-Sadr's decision to integrate his Saraya el-Salam forces into the national command structure aligns with Baghdad's goal of consolidating state control over armed groups.