US Withdrawal from Iraq Nears Completion, Risk Assets on High Alert

The US military is nearing completion of its withdrawal from Iraq, with approximately 2,000 American troops set to leave by September 30, 2026. The remaining contingent in the Kurdistan Region represents the final phase of a drawdown that began with a bilateral agreement struck in September 2024.

Iraqi Prime Minister Ali al-Zaidi has reaffirmed the September deadline for the US withdrawal, which he framed as part of a broader package: troops leave, US companies come in, and efforts to disarm militia groups get prioritized.

The withdrawal is significant because Iraq is OPEC's second-largest producer, and any shift in its security posture sends ripples through energy markets. Energy markets, in turn, are one of the most reliable transmission mechanisms for macro volatility into risk assets like Bitcoin.