Iraqi PM and US state secretary Marco Rubio discuss Kurdistan oil, PMF bill in parliament

Iraqi Prime Minister Mohammed Shia al-Sudani and US Secretary of State Marco Rubio spoke by phone on 22 July, addressing recent attacks on energy infrastructure in the Kurdistan region, efforts to resume oil exports via Turkey, and a contentious bill in Iraq's parliament concerning the structure of the Popular Mobilisation Forces (PMF).

Iraq's parliament is debating legislation to formalise the PMF—a network of Iran-linked militias—as an independent security institution under the prime minister's authority. The bill, which grants the PMF autonomous funding and command structures, has drawn fierce opposition from Sunni and Kurdish lawmakers who view it as creating a parallel military. Shia factions argue that the law imposes oversight on the PMF (originally formed to combat ISIS but now a political force). 

At the same time, the US warns it risks entrenching Iranian influence and undermining Iraq's sovereignty.

Rubio emphasised accountability for attacks on US-operated energy sites and urged consistent salary payments to Kurdistan's civil servants. He also reiterated concerns that the PMF bill would institutionalise armed groups tied to Iran.

"Secretary of State Marco Rubio spoke with Iraqi Prime Minister Mohammed Shia al-Sudani about the recent attacks on energy infrastructure, including those operated by US companies, and stressed the importance of the Iraqi government holding the perpetrators accountable and preventing future attacks," State Department Spokesperson Tammy Bruce said in a statement.

"The Secretary noted the importance of paying Iraqi Kurdistan Region (IKR) salaries consistently and resuming oil exports via the Iraq-Türkiye Pipeline," Bruce added. "The Secretary also reiterated serious U.S. concerns with the Popular Mobilisation Commission (PMC) bill currently pending in the Council of Representatives (COR), emphasising that any such legislation would institutionalise Iranian influence and armed terrorist groups undermining Iraq’s sovereignty."

Behind-the-scenes pressures

A Kurdish source, speaking anonymously to The New Arab, claimed that Rubio used "fierce language" with Sudani, who faces competing US and Iranian demands.

The source alleged that Kurdistan’s salary suspensions were ordered by Iran's Quds Force commander, Ismail Qaani, via Asaib Ahl al-Haq leader Qais al-Khazali, whose faction controls Iraq's finance ministry.

The source added the move by Iran and its proxies in Iraq is in defiance of the KRG's recent signing of oil and gas agreements with US companies in Washington.

Oil exports are expected to resume soon, the source added, due to US pressures to contain global prices from rising. The source also linked recent drone attacks on Kurdistan’s oil infrastructure to pro-Iran militias.

Sudani's office stated that the PMF bill aligns with broader security reforms and stressed the force's official status under Iraq's armed forces. He linked attacks on oil infrastructure to attempts to sabotage Iraq's economy, particularly after US firms signed oilfield development deals. The PM also framed Kurdistan's revenue transfers to Baghdad as resolving legal disputes.

The call triggered a backlash from Iraqi MPs, who vowed to pass the bill despite US objections.

Hardline MPs and militia commanders warned against US interference, with Basra MP Falih al-Khazali declaring that passing the bill was a "moral duty to martyrs." Hussein Mouanes of Kataib Hezbollah's Huqooq Movement called the US opposition "disgraceful."

At the same time, Hezbollah Brigades official Abu Ali al-Askari threatened "a different stance" if US forces remain beyond a two-month withdrawal deadline.

Last week, the Iraqi parliament conducted a second reading for the bill, but Sunni and Kurdish MPs walked out over its abrupt inclusion in the session's agenda. The draft proposes ministerial-level PMF leadership, separate budgets, and "mujahideen" status for members; a move critics say undermines state forces.

Deputy Speaker Mohsen al-Mandalawi defended it as "institutionalising command," with a final vote pending revisions.