Iraq continues to face deep challenges in maintaining security and political stability amid ongoing regional tensions and internal divisions within its armed forces and militias. The country’s military and security apparatus have been criticized for their inability to prevent attacks by armed groups, many of which operate openly within major cities like Baghdad. Despite widespread awareness among military commanders about the sources of these attacks, including drone and rocket strikes, the state has struggled to enforce control over militant factions.

Corruption plays a significant role in undermining Iraq’s security and governance. High-ranking positions within the security forces are frequently obtained through payments, turning command posts into lucrative investments. This system disincentivizes confrontation with militias, as commanders seek to protect their financial interests. Widespread graft and embezzlement further erode the effectiveness of the security apparatus, according to Iraqi officials and insiders.

The fragmented landscape of militias reflects both ideological and economic divides. Older militias have generally accepted government directives to integrate under state control, with prominent figures like Shia cleric Moqtada al-Sadr publicly calling for their disarmament. By contrast, more hardline factions maintain a strict refusal to relinquish arms, citing sacred duty and ideological commitment. This divergence highlights a tension between militias driven by political or religious motivations and those primarily concerned with protecting economic benefits.

In April, Iran and the United States agreed to a temporary ceasefire, which saw reduced, though not ceased, militia activity. Concurrently, Iraq and Saudi Arabia initiated discussions on reopening the Iraqi-Saudi oil pipeline, a strategic project aimed at bypassing the vulnerable Strait of Hormuz. The country’s oil industry has been severely affected by militia attacks and staffing shortages following the departure of foreign workers, leading to fuel shortages reminiscent of the post-2003 invasion period.

Iraq’s oil sector remains central to its economy, supporting millions of public employees, yet the industry suffers from long-standing structural problems. Post-2003 reconstruction efforts, hampered by looting, sabotage, and outdated infrastructure, have struggled to reach production targets. Contractual disputes, political interference, and delays in government payments—exacerbated by bureaucratic corruption—have driven many multinational firms to scale back or abandon projects. The oil sector’s revenues are frequently siphoned off by party-affiliated contractors, clans, and armed groups, perpetuating systemic graft.

This year has seen intensified anti-corruption efforts spearheaded by Prime Minister Ali al-Zaidi, who has ordered militias to disarm and vowed to combat corruption while courting foreign investment, including from the United States. In a high-profile crackdown, Deputy Oil Minister Adnan al-Jumaili was detained on corruption charges, with investigators uncovering arms, cash, and gold. Several other officials and lawmakers have since been arrested in related probes.

Despite these efforts, Iraq’s political landscape remains complex. The funeral of Iranian Supreme Leader Ali Khamenei in July drew massive crowds in Iraq’s holy city of Najaf, underscoring the country’s close religious and political ties with Iran. Yet at the same time, al-Zaidi met with U.S. President Donald Trump in Washington, affirming ongoing cooperation and U.S. influence over Iraq’s economic lifelines, including the suspension and resumption of critical oil revenue transfers controlled by the Federal Reserve Bank of New York.

Local sentiment reflects the paradox of Iraq’s position: facing pressure from both the United States and Iran, the country’s population navigates the difficult realities of economic hardship, political corruption, and security instability. In cities like Basra, one of the world’s most polluted yet oil-rich regions, attacks on oil infrastructure are viewed by some as acts of resistance against perceived exploitation, even as these strikes threaten the nation’s fragile economy.

The interplay of internal weakness, militia fragmentation, corruption, and regional influence continues to shape Iraq’s precarious path forward, as the government confronts deep-rooted challenges in asserting sovereignty and delivering tangible improvements to its people.