Iraq’s vast oil reserves, untapped gas and strategic location could turn it from a costly US security problem into a major source of American jobs, contracts and influence.
President Donald Trump warmly received Iraq’s new Shiite prime minister, Ali al-Zaidi, at the White House this week—and the reason goes far beyond diplomacy. Iraq holds approximately 145 billion barrels of proven crude-oil reserves, placing it among the world’s largest oil powers. Trump said the US expects to make “a lot of deals” with Baghdad, with American companies playing a central role in extracting Iraqi oil.
The opportunities include major contracts for American drilling, engineering, electricity and infrastructure companies. Iraq also burns roughly 18 billion cubic meters of natural gas annually—ranking third worldwide behind Russia and Iran—even while suffering chronic electricity shortages. American investment could capture that gas, generate electricity and help Baghdad end its dependence on Iranian energy.
Washington is also considering alternative routes for Iraqi oil that would bypass the vulnerable Strait of Hormuz. One possibility is restoring the old Kirkuk-Baniyas pipeline through Syria to the Mediterranean. For Trump, the goal is clear: transform Iraq from a country requiring an expensive American military presence into an energy and infrastructure market that creates US jobs while reducing Iranian influence across the region.