U.S. concludes its military mission in Iraq

The United States government has formalized the end of its military presence in Iraq after 23 years of uninterrupted deployment. The announcement marks the closing of the transition initiated in 2021, transforming the advisory and assistance mission against Daesh into a purely bilateral security relationship. The decision responds to Washington’s strategic directive to consolidate its withdrawal from the Middle East to prioritize systemic competition with China in the Indo-Pacific.

October 08, 2026  |  2 min read

The withdrawal process, coordinated with the Baghdad government, involves the final transfer of the remaining bases to the Iraqi Armed Forces. This move occurs at a time when Iraq seeks to reaffirm its national sovereignty and reduce the internal friction caused by the presence of foreign troops on its territory. The new collaboration framework envisions a small contingent remaining under diplomatic status for specific intelligence tasks and protection of international delegations.

Reconfiguration of risks and business opportunities

The American withdrawal alters the regional balance of power and shifts the responsibility for stability directly to the Iraqi state. For Spanish companies with interests in the energy, water, and infrastructure sectors, this scenario presents a dual risk vector. The absence of the American security umbrella could incentivize greater Iranian influence over decision-making processes in Baghdad. This factor would condition the awarding of public contracts and the legal security of Western investments against regional or Asian competitors.

Simultaneously, Iraq’s institutional normalization opens a window of opportunity for Spanish construction and engineering consulting firms. Rebuilding the power grid and modernizing water management are immediate priorities for an Iraqi executive that needs to demonstrate administrative effectiveness following the military withdrawal. The viability of projects will depend on the ability of Spanish subsidiaries to navigate a regulatory environment more dependent on local political dynamics and less subject to Washington’s mediation.

Conclusion

The strategic pivot toward the Indo-Pacific confirms that security in the Persian Gulf is no longer an automatic guarantee provided by third parties. Spanish companies must strengthen their own risk management protocols and diversify their local alliances to mitigate volatility. The stability of operations in the country will require direct and constant dialogue with the Baghdad authorities, assuming that operational security now rests entirely on local capabilities.