The Daily Digest

The Islamic Resistance in Iraq, in a statement signed in its collective name, called off the response it had set for 7 August to the US-Saudi strikes on Popular Mobilization facilities, answering Badr Organization secretary-general Hadi al-Amiri's appeal for restraint and the positions of some political leaders. Six tracked factions carried near-identical wording within ten minutes and none rejected the pause; no faction named the postponed operation, its object or a new date, and no faction claimed any attack — the channel-by-channel account is in the Militia Digest beside this briefing. Baghdad spent the same day moving the other way: it reinforced deployments in areas it called vulnerable with a further warning to the armed factions, promulgated the anti-terrorism law with severe penalties, and declared state control of weapons "irreversible" with no turning back from disarmament before the ruling coalition's 30 September deadline.

Prime Minister al-Zaydi met the Saudi intelligence chief in Baghdad on Friday evening, days after the American and Saudi strikes on the PMF; the military spokesman said Iraq will not be drawn into regional conflicts and has no coordination with Iranian advisers. The Houthis meanwhile escalated attacks on Saudi Arabia amid reports of a coordinated threat from Iraq and Yemen, and the interior ministry called the borders secure and stable.

On the economy, Pearl Petroleum rejected the Kurdistan Regional Government's breach allegations over Khor Mor gas supplied to Baghdad's electricity ministry, after the KRG accused Dana Gas and Crescent Petroleum of breaching contract and warned of legal action. The Region's fiscal ask is separate and now scheduled: the KRG says it will press Baghdad on jobs and the 2027 budget in upcoming talks, with the federal side carrying an 80 trillion dinar projected deficit and Brent's prompt month at 83.75 dollars a barrel on the desk's live series.

Still on the economy, the US Federal Reserve sent a 500 million dollar cash shipment to Iraq, while India's Reliance booked a supertanker at a record freight price to lift Iraqi crude — a freight cost carried on every barrel Iraq ships east as the export slump drives the deficit.

On the security file away from the factions, Anbar authorities dismantled a drug network and seized 408,000 captagon pills, and Iraqi forces seized 80,000 litres of smuggled oil and arrested five. Kurdistan Region President Nechirvan Barzani marked Assyrian Martyrs' Day, vowing the Region will remain a "shared homeland".

THINGS TO WATCH

Baghdad or Riyadh publishes an outcome from the Saudi intelligence chief's Baghdad visitmedium likelihoodhigh impactThe premier received the Saudi intelligence chief days after the strikes on the PMF, and a readout or a follow-on delegation would show whether the channel produced anything beyond the meeting.

Pearl Petroleum or the KRG initiates formal proceedings over Khor Mor suppliesmedium likelihoodmedium impactThe KRG warned of legal action over gas it says was supplied to Baghdad without its approval and Pearl has now rejected the breach allegations outright, leaving filing or arbitration as the next observable step.

A named arrest or charge brought under the newly promulgated anti-terrorism lawlow likelihoodhigh impactBaghdad promulgated the law with severe penalties as forces entered high readiness, so a case brought under the text would show it is operative rather than declaratory.

DNO raises its offer for Genel Energy or withdrawsmedium likelihoodmedium impactGenel's board rejected DNO's takeover proposal outright, which leaves the bidder to improve terms or step away over the Kurdistan asset base.

KRG-Baghdad talks on jobs and the 2027 budget are heldmedium likelihoodmedium impactThe KRG says it will press Baghdad on jobs and the 2027 budget in upcoming talks, and a session convening — or not — is observable against the federal 80 trillion dinar deficit.