US presents 14-point MOU to Iraq, demands disarmament of Iran-linked militias

Iraq's new Prime Minister, Ali Al-Zaidi, is scheduled to meet U.S. President Donald Trump in Washington, D.C., on 14 July — shortly after America's Independence Day on 4 July. Trump will no doubt highlight America's struggle for independence and press Al-Zaidi to make Iraq independent of Iran. However, a critical question remains: Is Trump ready for an Iraq that is independent of America?

Competing Pressures

The same day the White House released the terms of the 14-point U.S.-Iran Memorandum of Understanding (MOU), The New Arab reported that the U.S. delivered to Iraq "a series of political, economic and security conditions that the Iraqi government must meet in exchange for US support and to avoid what one official described as 'major sanctions.'" This places the U.S. in a contradictory position: threatening sanctions on Iraq while considering waiving sanctions on Iran.

In short, Washington demands:

• Disarmament of Iran-linked militias
• Preferred access to major projects and contracts for U.S. companies
• That Iraq not serve as a platform for attacks on other states in the region

A Narrow Lens

America tends to view Iraq only through the lenses of conflict, terrorism, or competition with Iran. While these are important issues, they do not define the full potential of the relationship. Today, Iraq and the United States have an opportunity to build a partnership centered on economic development, energy security, and regional stability.

Al-Zaidi: A New Generation

Al-Zaidi — a 40-year-old businessman and political newcomer with no prior government experience — was sworn in on 14 May 2026. He was nominated by the Coordination Framework after the November 2025 elections and a prolonged stalemate, and is illustrative of the "third generation" of Iraqi politicians.

During the stalemate, Washington:

• Suspended cash payments from Iraq's oil revenues
• Halted security assistance
• Suspended cooperation with Iraqi security agencies

U.S. Treasury Secretary Scott Bessent warned that those who enable militia violence "will be held accountable." Al-Zaidi was promptly nominated for the premiership, and Trump congratulated him, calling the development the start of a "tremendous new chapter" and inviting him to Washington.

Al-Zaidi has promised to make Iraq "a balanced country, regionally and internationally," though it remains to be seen if Washington is interested in balance or allegiance.

The Visit

Al-Zaidi's visit to Washington is the first high-level trip under his government. He will meet administration officials and congressional leaders. The agenda focuses on:

• Security and economic cooperation
• Advancing state control over weapons, militia disarmament, and integration
• Attracting U.S. investment, especially in energy and infrastructure

He will be accompanied by Iraqi business leaders.

U.S. Key Concerns

The U.S. traditionally views Iraq through the lens of countering Iran, protecting American personnel and interests, and advancing stability that supports broader regional goals — including maximum pressure on Iran and support for Israel.

Iran-Backed Militias and the Popular Mobilization Forces (PMF)

These groups operate outside full state control, retain independent military capabilities, control economic assets, hold political influence, and have attacked U.S. forces and personnel. The U.S. wants concrete action to:

• Expel militia affiliates from state institutions
• Cut their access to Iraqi budgets and salaries
• Achieve real disarmament or integration under state authority

Trump has emphasized that the Iraqi government must be "free from terrorism."

A Cautionary Lesson

The Americans should remember what happened when it suddenly dissolved the Iraqi armed forces in May 2003: it dismissed 400,000 armed men, many of whom joined the anti-U.S. resistance. A smart plan for militia disarmament, demobilization, and reintegration (DDR) would provide opportunities for militia leaders and members to transition to positions in the police or military, or to become political parties with some economic assets intact.

Economic and Governance Issues Enabling Militias

Key concerns include money laundering, militia financing networks, and an environment that deters legitimate investment. Some of Al-Zaidi's prior business ties have drawn scrutiny — for example, Al Janoob Islamic Bank for Investment & Finance was banned by the Central Bank of Iraq from dealing in dollars in a money laundering crackdown. However, the U.S. did not sanction Al-Zaidi or the bank.

Counter-ISIS and Transition of Security Ties

The U.S. seeks to complete the shift from the U.S.-led coalition mission, now in a phased drawdown, with some forces remaining in Kurdistan until late 2026 — while ensuring Iraq does not become a safe haven or proxy battleground. In April 2026, U.S. Secretary of War Pete Hegseth noted that U.S. troops would be "hanging around" in the Middle East, though it remains to be seen if that still holds given the terms of the U.S.-Iran Memorandum of Understanding.