A powerful Iran-backed Shiite militia in Iraq has warned the country’s US-backed prime minister, Mustafa Al Kadhimi, “not to test the resistance’s patience”, threatening him with assault and all-out conflict after tension rose at the weekend.
The “region is boiling and the possibility of a full-blown war is there,” Abu Ali Al Askari, a spokesman for the Kataib Hezbollah militia, said on Twitter.
Tension between the Iraqi government and Iran-backed paramilitaries have been building with the approach of the first anniversary of the US killing of Iran’s General Qassem Suleimani and a leading Iraqi militia leader. On Thursday night, dozens of fighters of the Asaib Ahl Al Haq militia were deployed in Baghdad in a show of force after Iraqi security forces arrested a member suspected of rocket attacks on the US Embassy.
In response, Mr Al Kadhimi toured Baghdad’s streets and threatened a “decisive confrontation if needed”.
Hours later, the leader of Asaib Ahl Al Haq, Qais Al Khazali, said the arrest was based on “malicious accusation” and that the issue had been solved.
Since taking office in May, Mr Al Kadhimi’s efforts to rein in militias have failed. In June, Iraq’s counterterrorism service arrested almost a dozen militiamen accused of attacking Baghdad’s Green Zone, the seat of key government offices and western diplomatic missions, but they were released few days later.
“Our alliance with the brothers in the resistance factions, whether local or foreign, is a strong one,” Al Askari said. What “harms them, harms us as well, and we are committed to defending them based on frameworks we agreed upon”, he said.
“We call on Al Kadhimi, the traitor, not to test the resistance’s patience from now onwards; the time is appropriate to cut his ears as the ears of a goat are cut,” he said.
The phrase referring to a goat’s ears is widely used in Iraq to warn someone they will be punished.
Kataib Hezbollah has accused Mr Al Kadhimi of collaborating with the US in the killing of Suleimani and Iraqi militia leader Abu Mahdi Al Muhandis. The prime minister was director of Iraq’s intelligence service when a US drone attacked his convoy near Baghdad’s international airport on January 3.
Kataib Hezbollah in Iraq has no links to Lebanon’s Iran-backed Hezbollah militia.
Al Askari also said recent rocket attacks on US assets in Iraq “will benefit only our idiot enemy Trump and that must not be repeated”.
Iraq’s Iran-backed militias announced a ceasefire in October to allow the withdrawal of US forces from the country, but this was breached at least twice in the past month when rockets were fired towards the US Embassy in the Green Zone.
The Green Zone has been a frequent target for Sunni and Shiite militants since the 2003 US-led invasion that toppled Saddam Hussein’s regime.
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The specs: 2018 BMW R nineT Scrambler
Price, base / as tested Dh57,000
Engine 1,170cc air/oil-cooled flat twin four-stroke engine
Transmission Six-speed gearbox
Power 110hp) @ 7,750rpm
Torque 116Nm @ 6,000rpm
Fuel economy, combined 5.3L / 100km
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The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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