Washington seeks to break China's grip on Iraq's oil
This digest was compiled by AI from multiple sources — links to the originals are below.
The Trump administration is intensifying efforts to pull Iraq away from China's and Russia's spheres of influence, focusing on replacing Beijing's broad energy and investment deals with U.S. agreements. A senior EU security source told OilPrice.com that last week's White House meeting between Iraqi PM Ali al-Zaidi and President Trump was crucial in formulating a new cooperation framework. The push reflects Washington's view of the Middle East as vital to U.S. interests, including as a bridge between Asia and Europe and a source of oil for China.
Strategic Context
The 2025 National Security Strategy delineates three core geographical spheres — Asia (China), Europe (Russia or NATO), and the Americas (U.S.) — but the Middle East remains vital as a geographical bridge and home to major U.S. military bases. Iraq sits at the heart of the region, holding some of the world's largest oil and gas reserves. Washington views controlling Iraq's resources as key to limiting China's economic growth, which powers its military expansion.
The China-Iraq Deal
Beijing negotiated its foundational cooperation deals with Iraq during the period of U.S. weakness after 2003, including the 2019 'Oil for Reconstruction and Investment' agreement. This deal gave China access to Iraqi oil in exchange for infrastructure investment, entrenching Chinese influence. The U.S. now aims to replace these agreements with similar U.S.-Iraqi frameworks, according to a senior EU security source.
U.S. Diplomatic Push
Last week's White House meeting between Iraqi PM Ali al-Zaidi and President Trump was central to formulating a new cooperation framework. The source said the goal is to remove Beijing and Moscow from Baghdad's foreign relationship equation. The U.S. is leveraging its military presence and historical ties to counter Iranian-backed proxies that have targeted Western forces in Iraq.
What's Next
The U.S. is expected to propose specific energy and investment deals to Iraq in the coming months. It remains unclear whether Baghdad will risk alienating China, its largest oil customer and a key investor in infrastructure.
1 source
Washington seeks to break China's grip on Iraq's oil
