What Happened to Baghdad?

Baghdad, a city steeped in millennia of history and once the intellectual heart of the Islamic Golden Age, has endured profound transformations in the 20th and 21st centuries. After centuries of Ottoman rule, it became the capital of the independent Kingdom of Iraq in 1932 and later the Republic in 1958. The city experienced periods of rapid modernization and growth, becoming one of the most populous urban centers in the Middle East.

The modern era, particularly post-2003, has been defined by conflict and instability. The U.S.-led invasion in 2003 and the subsequent years of sectarian violence deeply scarred the city and its infrastructure. While the defeat of ISIS in 2017 brought a degree of stability, Baghdad continues to be a battleground for internal political factions and regional proxy conflicts.

Current Political and Economic Landscape (as of March 2026): Iraq, with Baghdad at its political core, is currently experiencing significant political turmoil. Months after the November 2025 elections, the country is still struggling to form a new federal government, with Prime Minister Mohammed al-Sudani seeking a second term amidst resistance from powerful militia-aligned parties and external influences, notably U.S. opposition to certain candidates. This political deadlock exacerbates the country's economic vulnerabilities. Iraq's economy remains heavily reliant on oil, which accounts for over 90% of government income. The year 2026 is proving challenging, with oil prices sliding and, more critically, the closure of the Strait of Hormuz in early March 2026 due to regional conflict, severely impacting Iraq's ability to export oil. This has led to drastic reductions in oil production and exports, threatening the government's capacity to meet basic obligations like public sector salaries and fund development projects.

Security Challenges and Infrastructure Development: Security remains a paramount concern in Baghdad. The city, particularly the heavily fortified Green Zone, has been subjected to repeated rocket and drone attacks, often attributed to Iran-aligned militias. On March 14, 2026, a missile struck a helipad inside the U.S. Embassy compound in the Green Zone, and on March 15-16, 2026, Baghdad International Airport experienced multiple rocket and drone attacks, injuring several people and raising fears for the security of nearby prisons housing dangerous inmates. These incidents underscore the fragile security environment and the ongoing regional tensions that play out on Iraqi soil.

Despite these challenges, there are ongoing efforts to improve Baghdad's infrastructure and urban planning. The city's population is estimated at over 8.3 million in 2026, with a daytime population potentially exceeding 10 million, straining existing services and infrastructure, particularly traffic. In response, Iraq's Planning Ministry is pursuing a policy to relocate some government institutions and investment projects to surrounding districts to alleviate pressure on the capital. Major infrastructure projects, such as the Al-Faw Grand Port and the associated 'Development Road' (a 1200-kilometer rail and highway network linking the Gulf to Turkey), are progressing, aiming to transform Iraq into a regional logistics hub. The World Bank is also planning a permanent office in Baghdad to support infrastructure development. However, the success of these initiatives is heavily dependent on achieving greater political stability and overcoming economic hurdles.