Pentagon says it has formally completed withdrawal of US troops from Iraq

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Published: 2026-09-30 • Permanent link

Pentagon's Withdrawal Marks Significant Shift in US-Middle East Relations

The Pentagon announced Wednesday that it has formally completed its withdrawal of US troops from Iraq, bringing an end to a 12-year military presence in the country. The move comes two years after a withdrawal agreement was reached, and it marks a significant shift in US-Middle East relations. The US had maintained a military presence in Iraq since the fall of Saddam Hussein in 2003, with the goal of combating the Islamic State (ISIS) and other terrorist groups. The withdrawal is seen as a major step forward in US efforts to reduce its military footprint in the region.

As the news sends shockwaves through the financial markets, investors are bracing for a potential impact on the global economy. The drawdown of US troops from Iraq could lead to a decrease in oil prices, as Iraq is a major oil producer and a significant player in the global energy market. The resulting economic ripple effects could be felt across the globe, particularly in countries that rely heavily on oil exports. Meanwhile, the withdrawal could also have implications for the defense industry, as the US reduces its military spending and shifts its focus to other priorities.

The US military's presence in Iraq has a long and complex history, dating back to the 2003 invasion that toppled Saddam Hussein's regime. Since then, the US has maintained a significant military presence in the country, with troops involved in combat operations against ISIS and other terrorist groups. The withdrawal is seen as a major milestone in US efforts to reduce its military footprint in the region and to shift its focus to other priorities, such as counterterrorism and counterinsurgency operations.

As the US withdraws its troops from Iraq, the country is left to navigate the challenges of post-military occupation. The withdrawal raises questions about the future of Iraq's security forces and the country's ability to defend itself against external threats. The international community will be watching closely as Iraq navigates this transition, and the US will be working closely with its allies to ensure a smooth transition and to support Iraq's efforts to rebuild its security forces.