The Role of Oil in Iraqi Politics: From Independence to The Beginning of The Twenty-first Century

Abstract

Oil has historically played a pivotal role in shaping global geopolitics and economic systems, especially in resource-rich countries like Iraq. Since its independence in 1932, Iraq's political and economic dynamics have been deeply influenced by its vast oil reserves, which are among the largest in the world. Despite extensive historical events, there remains a need for comprehensive analysis of how oil has continuously shaped Iraq’s domestic governance, foreign relations, and post-conflict reconstruction, especially from independence to the early twenty-first century. This study aims to identify and analyze the role of oil in Iraqi politics across different historical periods, including the post-independence era, the oil crises of the 1970s, and the post-2003 reconstruction phase. The findings highlight that Iraq’s internal stability, foreign policy, and economic trajectory were significantly determined by oil market fluctuations, political rentierism, and international interventions. The oil crises of 1973 and 1979 not only redefined Iraq’s economic capabilities but also its political leverage in the global arena. This study uniquely contextualizes oil as both a strategic resource and a political instrument, revealing its dual role in Iraq’s pursuit of sovereignty and its susceptibility to foreign influence. The research underscores the critical need for Iraq to balance its oil-dependent economy with inclusive political reform, sustainable development, and regulatory autonomy to mitigate future vulnerabilities and external dependencies.