People in Baghdad celebrated a perceived Iranian victory after US President Donald Trump announced a ceasefire. Reuters
People in Baghdad celebrated a perceived Iranian victory after US President Donald Trump announced a ceasefire. Reuters
People in Baghdad celebrated a perceived Iranian victory after US President Donald Trump announced a ceasefire. Reuters
People in Baghdad celebrated a perceived Iranian victory after US President Donald Trump announced a ceasefire. Reuters

Iraq relieved but still on edge after Israel-Iran ceasefire


Sinan Mahmoud
  • English
  • Arabic

The guns have fallen silent for now, but in Iraq, no one is truly at ease.

A fragile calm has descended over the region as Iran and Israel agreed to a US-brokered ceasefire, ending a dangerous spiral that pushed the Middle East to the brink of all-out war. In Iraq, the mood is one of cautious relief mixed with a lingering anxiety over what comes next.

While Iraq was spared the direct strikes, it once again found itself in the eye of the storm and felt the tremors acutely. The missiles, drones and fighter jets of both warring sides flew over the country, while heavily armed, Iran-backed Shiite militias in Iraq, threatened to join the fight to strike US or Israeli targets.

“Those were the most difficult days for us,” a senior Iraqi diplomat told The National. “The crisis was beyond our control and influence, and we were on the brink of a wide-scale war if the armed factions intervened.

“We’re breathing a sigh of relief now, but we’re not out of the woods yet.” He warned that “the embers remain beneath the ashes”, pending negotiations between Iran and the US that American President Donald Trump suggested would take place next week.

Alarmed at the war's potential to plunge Iraq and the wider region into chaos, the highest Shiite religious authority in Najaf expressed grave concern over the unfolding crisis. In an unprecedented move, Shiite spiritual leader Grand Ayatollah Ali Al Sistani issued two statements last week, condemning the Israeli strikes and calling on the international community to intervene.

Iraqi Prime Minister Mohammed Shia Al Sudani tried to walk a delicate tightrope between Washington and Tehran and urged calm throughout the crisis, calling on Iran to consider diplomacy instead. The Iraqi government also asked both Iran and US as well as Tehran-allied militias to prevent Baghdad from being caught up in the conflict.

The ceasefire gives us a break, not a solution
Baghdad taxi driver Khalid Jaber

Israel launched a surprise raid on Iran on June 13, unleashing a wave of strikes against dozens of targets, including nuclear factories and military command centres. The strikes killed senior Iranian figures, among them armed forces officers and top nuclear scientists.

That ignited a 12-day air war between the long-time foes. Iran’s health authorities have said that 627 people were killed and 4,870 were injured, while Israel put its toll at 28 killed and 1,386 injured. The war ended with a retaliatory missile salvo from Iran against a US military base in Qatar in response to an American intervention to bomb Tehran's nuclear centres.

Mr Al Sudani welcomed the ceasefire, expressing hope that the agreement “will be strong and cohesive and not fragile”. His adviser on political issues, Hussain Allawi, said Iraq was “committed to supporting peace and stability in the region, and looks forward to a new phase that consolidates security and development”.

Iraqis have recently witnessed unprecedented political and security stability, encouraging the government to launch a series of infrastructure projects and introduce reforms to improve the country's business environment and public services. Several mega-deals have been signed with major international companies and countries, mainly in the field of energy. The nation is also preparing for a national election in November.

Iran reported hundreds of people being killed during 12 days of Israeli strikes. EPA
Iran reported hundreds of people being killed during 12 days of Israeli strikes. EPA

Iran in retreat

The war will probably force Iran to “retreat and reassess its calculations, significantly altering its behaviour at least during the next four years with Trump in the White House”, said Ihsan Al Shammari, head of the Iraqi Political Thinking Centre.

Mr Al Shammari believes that Iran’s waning influence will have a ripple effect on its proxies in Iraq and that will “lead to the weakening of its allies, resulting in a vastly different political reality”.

He sees the non-involvement of the militias as part of an Iranian strategy as it “still relies on maintaining these proxies, therefore it attempted to shield Iraq from any repercussions that might open the door to a new equation”.

However, he added, the presence of these groups could be on the table of upcoming negotiations in order to “disarm them and undermine their political influence”.

Across Iraq, the mood is sombre.

Despite the current truce, many Iraqis are still fearful about the unresolved tension between Iran and Israel, between militias and the state, and between competing global interests.

“The ceasefire gives us a break, not a solution,” Baghdad taxi driver Khalid Jaber, 56, told The National.

For him, the recent flare-up served as a stark reminder that Iraq’s stability is perpetually at risk from conflicts it cannot control.

“Iraq may not have been bombed, but it was under siege in every other sense – politically, emotionally and economically,” he added.

“We will wait for the next shock and wondering if we’ll be able to weather the storm again.”

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Ain Dubai in numbers

126: The length in metres of the legs supporting the structure

1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch

16 A380 Airbuses: The equivalent weight of the wheel rim.

9,000 tonnes: The amount of steel used to construct the project.

5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place

192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.

Winners

Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)

Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)

Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)

Best Young Women’s Player
Vicky López (Barcelona / Spain)

Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)

Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)

Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)

Women’s Coach of the Year
Sarina Wiegman (England)

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5

APPLE IPAD MINI (A17 PRO)

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Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4

Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps

Biometrics: Touch ID, Face ID

Colours: Blue, purple, space grey, starlight

In the box: iPad mini, USB-C cable, 20W USB-C power adapter

Price: From Dh2,099

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Results

6.30pm: Mazrat Al Ruwayah – Group 2 (PA) $36,000 (Dirt) 1,600m, Winner: RB Money To Burn, Tadhg O’Shea (jockey), Eric Lemartinel (trainer)

7.05pm: Handicap (TB) $68,000 (Turf) 2,410m, Winner: Star Safari, William Buick, Charlie Appleby

7.40pm: Meydan Trophy – Conditions (TB) $50,000 (T) 1,900m, Winner: Secret Protector, William Buick, Charlie Appleby

8.15pm: Al Maktoum Challenge Round 2 - Group 2 (TB) $293,000 (D) 1,900m, Winner: Salute The Soldier, Adrie de Vries, Fawzi Nass

8.50pm: Al Rashidiya – Group 2 (TB) $163,000 (T) 1,800m, Winner: Zakouski, William Buick, Charlie Appleby

9.25pm: Handicap (TB) $65,000 (T) 1,000m, Winner: Motafaawit, Sam Hitchcock, Doug Watson

Dubai works towards better air quality by 2021

Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.

The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.

These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.

“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.

“We’re in a good position except for the cases that are out of our hands, such as sandstorms.

“Sandstorms are our main concern because the UAE is just a receiver.

“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”

Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.

There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.

“There are 25 stations in total,” Mr Al Daraji said.

“We added new technology and equipment used for the first time for the detection of heavy metals.

“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”

Where to buy

Limited-edition art prints of The Sofa Series: Sultani can be acquired from Reem El Mutwalli at www.reemelmutwalli.com

Updated: June 26, 2025, 11:57 AM