Iraq pledges no threats to Iran from its soil as 4 deals signed

Iraq's prime minister traveled to Tehran to reaffirm security ties as the US and Iran entered a 12th consecutive night of strikes.

Iraqi Prime Minister Ali al-Zaidi told Iranian leaders Thursday that Baghdad will not allow its territory to be used for hostile actions against Iran, as the two neighbors signed four cooperation agreements during his first official visit to Tehran.

"Iraq will never forget Iran's support in the fight against the Daesh/ISIS terrorist group," al-Zaidi said at a joint meeting of senior delegations, according to a statement from Iran's presidential office. "Iraq will not accept hostile action against Iran by any party."

The visit came as the US launched its 12th consecutive night of strikes on Iran, with President Donald Trump describing the conflict as a "skirmish" while warning of attacks on Iranian infrastructure. Iran's Islamic Revolutionary Guard Corps claimed attacks on US military assets in Jordan and Kuwait, and said it stopped three oil tankers from passing through the Strait of Hormuz — a chokepoint that handles about 21 percent of global oil trade.

Al-Zaidi's balancing act between Washington and Tehran carries direct implications for energy markets. Iraq, the second-largest OPEC producer, pumps about 4.5 million barrels per day, and any disruption to its export routes through the Strait of Hormuz or perception of instability could add to the risk premium already priced into crude. The Iraqi leader met with US President Donald Trump in Washington earlier this month, signing trade and economic deals worth billions of dollars, before traveling to Tehran to deliver the same message of neutrality.

Four Agreements Signed

The two countries signed four documents in the presence of al-Zaidi and Iranian President Masoud Pezeshkian: an agreement on road transport of goods, a memorandum on constructing the Khosravi-Khanaqin-Baghdad railway, a sister-city agreement between Tehran and Baghdad, and a memorandum on public administration and training. Pezeshkian called for rapid implementation of bilateral agreements and expansion of economic, infrastructure and security cooperation, saying regional countries should facilitate the movement of people, trade and investment based on shared historical, cultural and religious ties.

Regional Escalation Tests Iraq's Neutrality

Al-Zaidi's visit came against the backdrop of the most intense US-Iran military confrontation in decades. The US House of Representatives approved a $95 billion budget framework this week, with $73 billion earmarked for military and intelligence operations linked to the war against Iran. The Pentagon deployed a B-1 long-range bomber from a UK airbase for the first time since fighting resumed, according to US officials cited by Axios.

Iranian Foreign Minister Abbas Araghchi, speaking on the sidelines of al-Zaidi's meeting, said the US must abandon what he described as its "irrational, excessive and hegemonic approach" for any progress in relations. He said the issue was not the exchange of messages with Washington, noting that "there are enough mediators" facilitating communication.

The last time Iraq served as a diplomatic bridge between Washington and Tehran during a period of direct hostilities was in early 2020, after the US killed Qassem Soleimani in a drone strike near Baghdad airport. That escalation pushed Brent crude above $70 a barrel before tensions eased.

Following his Tehran visit, al-Zaidi is expected to continue his regional tour in Turkey and Saudi Arabia to discuss bilateral cooperation, his office said.

This article is for informational purposes only and does not constitute investment advice.