US unveils sprawling consulate in Erbil as troops shift to Kurdistan region

The US on Wednesday unveiled a sprawling new diplomatic compound in Erbil, the capital of Iraq’s semi-autonomous Kurdish region, underscoring the country's deepening footprint there as it draws down American troops in Baghdad and other parts of Iraq. 

The compound spans 206,000 square meters, making it the largest US consulate in the world. Construction started in 2018 with estimated costs around $800m, according to a 2019 US government report.

Erbil has been a hub for US troops participating in the campaign against the Islamic State militant (IS) group. Earlier this year, the US military said it completed operations inside Iraq against IS.

In September 2024, the US said it would transition the justification for its troops' presence in Iraq from countering IS to a mutual defence partnership with Baghdad.

Iraqi media reported in August that, per that agreement, they withdrew hundreds of troops from two key Iraqi bases, including Ain al-Asad base in Anbar Province and the Victory Base Complex, located within the Baghdad International Airport.

Iraqi news site Kurdistan 24 reported that the majority of US forces who remain in Iraq will move to Erbil.

The deployment of US troops in Iraq has been a hot-button political issue for both countries. On one hand, it is Americans frustrated with so-called forever wars, and on the other hand, Iraqis who endured the 2003 US invasion of their country and two decades of conflict. 

In the lead-up to Iraqi elections in November, Prime Minister Mohammed Shia al-Sudani told Reuters that Iraq would only be able to disarm militias backed by Iran after US troops leave the country.

Sudani's political bloc won the most seats in the election, but he is not guaranteed to continue as leader with the country's parties in negotiations. 

“There is no ISIS. Security and stability? Thank God it's there ... so give me the excuse for the presence of 86 states,” he told Reuters in an interview in Baghdad, referring to the number of countries that joined the US-led coalition against IS in 2014, when the militant group steamrolled across the country.

Pipelines and energy

The US consulate technically has no military role. Consulates' primary focus is to represent and provide services to citizens in regions that do not have access to the embassy in the capital, promote their country’s cultural and economic interests and serve as a base for foreign diplomats to engage away from the capital. 

Iraq’s Kurdistan region was granted some semi-autonomy in 2005. For example, it has its own prime minister, president, and a separate security force, the Peshmerga.

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"The building we inaugurate today is a testament to our commitment and is a physical symbol of America's long-term partnership with Iraq and the Iraqi Kurdistan Region,” Michael Rigas, US deputy secretary of state for management and resources, said at an opening ceremony for the consulate in Erbil. 

"The existence of this diplomatic centre here is a clear political message regarding the importance of Erbil, and the Kurdistan Region. It reflects the deep partnership in which Iraq and the Kurdistan Region maintain with the US,” Kurdistan Region President Nechirvan Barzani said in a speech opening the consulate. 

Rigas said Washington saw "the Iraqi Kurdistan Region as a dynamic entry point to Iraq's markets for American companies".

Many US companies are already heavily invested in Iraq, including in Kurdistan, and oil giant ExxonMobil has recently returned to the country after a two-year absence.

Erbil has long jockeyed with the central government in Baghdad for access to Iraq’s oil wealth. 

The US lobbied to reopen a key pipeline running through the Kurdistan region that connects Iraqi oil fields to Turkey’s Ceyhan port, which had been closed in 2023 amid a dispute between Erbil and Baghdad over oil sales profits. Iraq is the second-largest oil producer in the energy alliance dubbed Opec. 

Although the pipeline reopened earlier this year, its status remains in flux with negotiations between Erbil, Ankara and Baghdad. 

In July, a drone attack attributed to Iraqi militias backed by Iran targeted oil fields in the Kurdistan region. Last month, a rocket attack hit facilities at the Kurdistan region’s Khor Mor gas field, shutting production and causing power cuts.

The government in Erbil has lobbied for years for deeper US security ties, including the ability to purchase its own air defence systems, a move that Baghdad and Iran oppose.