US-Iraq energy deal sidelines Iran, expanding American role in oil and gas

BAGHDAD, Iraq — Iraqi Prime Minister Ali Falih ez-Zeydi and US Presidential Special Envoy Tom Barrack signed a broad strategic agreement in mid-June 2026 aimed at restructuring Iraq's energy infrastructure and expanding the role of American companies. The multibillion-dollar package is intended to reduce Iraq's reliance on Iran in the energy sector, according to terms of the deal. Under the agreement, the two sides agreed to widen US investment in oil and gas projects and accelerate the transfer of technology. Plans also call for modernizing electricity transmission lines and expanding natural gas processing capacity. The Iraqi government has framed the deal as a step toward meeting domestic energy demand and securing long-term supply. Officials said it is expected to reshape energy dynamics in the region and elevate US-Iraq commercial relations, though the extent of those changes will depend on implementation.