Members of Iraq's Popular Mobilisation Forces attend the funeral of colleagues killed in an air strike in southern Baghdad on July 31. The PMF held US forces responsible for the attack. EPA
Members of Iraq's Popular Mobilisation Forces attend the funeral of colleagues killed in an air strike in southern Baghdad on July 31. The PMF held US forces responsible for the attack. EPA
Members of Iraq's Popular Mobilisation Forces attend the funeral of colleagues killed in an air strike in southern Baghdad on July 31. The PMF held US forces responsible for the attack. EPA
Members of Iraq's Popular Mobilisation Forces attend the funeral of colleagues killed in an air strike in southern Baghdad on July 31. The PMF held US forces responsible for the attack. EPA

Iran-linked Iraqi militias say truce with US is over


Sinan Mahmoud
  • English
  • Arabic

Iran-backed armed factions in Iraq are ending the truce that was meant to give the Iraqi government time to negotiate the withdrawal of US troops from the country, a high-ranking member of one of the groups told The National.

“The resistance factions in Iraq ended this truce and therefore all options are available to the resistance forces to target all US bases inside Iraq,” Haider Al Lami, a member of the political council of Al Nujaba Movement in Iraq, said.

Mr Al Lami said there was “procrastination and stalling” from the American side during talks with the Iraqi government on the withdrawal of troops.

A funeral ceremony for members of the Iraqi Popular Mobilisation Forces group, who were killed in an air strike on their headquarters in Babil province. Anadolu
A funeral ceremony for members of the Iraqi Popular Mobilisation Forces group, who were killed in an air strike on their headquarters in Babil province. Anadolu

Calls for an end to the truce were raised after at least four members of the Popular Mobilisation Forces's 47th Brigade were killed in a US strike on a base in Babil province, south of Baghdad, on July 30.

The PMF, an umbrella term for groups of armed fighters that are officially part of the Iraqi security forces, confirmed members of its 47th Brigade had been killed in an attack carried out “by missiles fired from drones”.

There will be a response in the coming days that could target more than one place, not necessarily in Iraq, Syria and the Zionist entity [Israel]
Haider Al Lami of the Al Nujaba Movement in Iraq

The brigade belongs to Kataib Hezbollah, one of the most fiercely anti-US groups within the PMF.

Less than a week later, rockets hit the Ain Al Asad airbase in western Iraq which houses US troops, injuring at least five American personnel, in an attack claimed by a group called The Revolutionaries.

Mr Al Lami confirmed that the group was part of the Islamic Resistance in Iraq, an alliance that has claimed a number of attacks on US personnel and assets in Iraq since Israel launched its war in Gaza last year.

“There will be a response in the coming days that could target more than one place, not necessarily in Iraq, Syria and the Zionist entity [Israel],” said Mr Lami, who had warned after the Babil strike that such a move was being considered.

Meanwhile, the US said that conversations in the higher military commission continue.

"Our relationship with Iraq is a strong one," Pentagon spokesman Maj Gen Pat Ryder told reporters.

"We're there at the invitation of the government of Iraq, and we'll continue to have the discussions through the higher military commission and through our US-Iraq joint security co-operation dialogue, to look at not only what the future of the coalition is, but also what our longer-term US-Iraq bilateral security relationship will be.

"As Secretary [Lloyd] Austin has said many times, we're not going to tolerate attacks on our forces, and we will always respond appropriately in a time and manner of our choosing."

Fears of regional war

The unofficial truce, revealed by The National in March, comes to an end amid heightened fears of a regional war following Israel's killing of a senior commander of the Iran-backed Lebanese group Hezbollah in Beirut and the assassination of Hamas political leader Ismail Haniyeh in Tehran in late July. Iran blames Israel for the assassination and has vowed to respond.

“The Islamic Resistance in Iraq gave space to the political and diplomatic side, even though the resistance knew that these diplomatic and political means were insufficient against an arrogant American enemy that understands only the language of force,” Mr Al Lami said.

A senior Iraqi army official said he was wary of announcements or threats by the armed groups to end the truce, and that this would not necessarily lead to a significant increase in attacks.

Announcing the end of the truce “is a way of pressuring the US in front of the world”, said the official.

In 2003, the US led an international coalition to invade Iraq under the false pretext that it was developing and stockpiling weapons of mass destruction. No such weapons were found, and the invasion plunged Iraq into chaos, and led to one of the bloodiest insurgencies, as well as decades of political and security instability.

In 2008, Baghdad and Washington signed the Strategic Framework Agreement that led to the withdrawal of most US forces by the end of 2011, leaving behind a small number of troops to protect its embassy and to train and assist Iraqi forces. That agreement also shapes the relations and co-operation in other fields.

But foreign combat troops returned in 2014 in a US-led international coalition, when ISIS seized about a third of the country as the American-trained Iraqi security forces were unable to stop the extremist group.

After the defeat of ISIS in Iraq by the end of 2017, the US started to reduce the number of its troops in the country – from about 5,000 to 2,500 now – along with other countries from the international coalition.

Since 2018, Iran-backed Shiite militias and political parties have been demanding the full withdrawal of US troops. Sunni and Kurdish parties do not support that demand because they are concerned the troops' departure could lead to a power vacuum.

Agreement 'almost finished'

Prime Minister Mohammed Shia Al Sudani's government initiated in January talks with US to end the coalition's mission. Baghdad said it was willing to enter bilateral security agreements with individual member states.

US Defence Secretary Lloyd Austin, centre right, meets Iraq’s Defence Minister Thabet Al Abbasi, second left, at the Pentagon in Washington, in July. Reuters
US Defence Secretary Lloyd Austin, centre right, meets Iraq’s Defence Minister Thabet Al Abbasi, second left, at the Pentagon in Washington, in July. Reuters

In late July, an Iraqi delegation led by Defence Minister Thabet Al Abbasi visited Washington to put the final touches to the deal.

Baghdad and Washington were set to announce the agreement early this month, but this was postponed after the Ain Al Asad attack, a senior government official told The National.

“We almost finished everything, and the announcement was about to happen, but Ain Al Asad attack happened,” he said. “So, it was hard to announce the agreement immediately as if this announcement was made because of the strike.”

He said the agreement would be announced “very soon”.

Under the agreement, the US-led coalition would begin withdrawing from their bases in Baghdad and Anbar in September, and would formally end their mission by September next year, he said.

Some troops would remain in Iraq's Kurdistan Region until September 2026 to oversee the anti-terrorism operations in Syria.

“Fighting terrorism in Syria is different from fighting terrorism in Iraq. Daesh is stronger in Syria and has strongholds,” he said, using the Arabic acronym for ISIS.

Iraqi Foreign Minister Fuad Hussein said negotiations were still in progress, but any announcement would be delayed due to the situation in the region and the US presidential election.

“The discussions are continuing at the level of military leadership and they have not been cancelled, but there are special circumstances,” Mr Hussein said in an interview to Al Hadath satellite channel aired on Tuesday night.

“First, we are talking about a state of tension in the region – and sometimes we are talking about an imminent war, and second, the situation in the US and the elections in November,” he said.

Lizzie Porter contributed from Istanbul

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.

“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.

His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.

He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.

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Updated: August 21, 2024, 1:07 PM