Trump teases ‘massive’ oil deals with Iraq during visit from PM

WASHINGTON – US President Donald Trump said “massive” new oil deals with Iraq would be announced soon as he hosted Prime Minister Ali al-Zaidi and hailed the prospect of American companies doing more business in the country.

“Iraq has tremendous potential because of their oil and because of other things,” Trump said on July 14 at the White House.

“We’re going to create a lot of jobs for both countries, and we’re going to be taking out a lot of oil. A lot of oil is coming out, and the American companies are doing it.”

Trump said there would be “a lot of deals” and announcements could be coming “this week or next week.”

He didn’t share any details, just describing them as “massive, among the largest.”

Securing such agreements would be a boost to al-Zaidi, who is eager to tap US investments to help raise Iraqi oil and gas capabilities.

But his trip also comes at a delicate time for Iraq and the region, as the US and Iran clash over the status of the Strait of Hormuz.

Iraq’s finances were among the hardest hit of Persian Gulf nations when Iran effectively closed the critical waterway for energy flows following the start of US and Israeli air strikes in late February.

The Iran war has spurred tension between Iraq and other nations in OPEC as Baghdad pushes for bigger production quotas in a bid to recoup oil sales lost because of the conflict.

Iraq’s oil ministry has raised the prospect of exiting the group in the future.

Trump sidestepped a question about whether he backed Iraq’s pressure campaign on OPEC, saying that he supported the Iraqi PM and that “as far as OPEC, that’s his decision.”

Ahead of al-Zaidi’s visit, an Iraqi government spokesperson said the country would discuss alternative hubs for exports to ease the consequences of any Hormuz closure.

The spokesperson also raised the prospect of a fund based on oil exports to the US that could be used for investments by US companies.

Al-Zaidi is a political novice, who emerged as a compromise candidate after Trump lobbied against former Prime Minister Nouri al-Maliki.

Both al-Maliki and former Prime Minister Mohammed Shia Al-Sudani ended their bids, clearing his path.

The US-Iran clash casts a shadow over Iraq’s internal politics.

Both Washington and Tehran have jockeyed for sway over Baghdad and the US is keen to reduce the Islamic Republic’s influence over its neighbour.

Trump wants to curtail Iranian support for militant groups across the Middle East.

Tehran funds several organisations – including armed groups – in Iraq, many of whom have political wings and members in Parliament.

Iran-backed proxies in Iraq have repeatedly targeted the US embassy in Baghdad. BLOOMBERG