Iran’s Economic Infiltration on Iraq

ECONOMY 15.11.2021
Yasir Rashid Researcher, Economy

After the fall of the Ba’athist regime in 2003, Iraq is of particular importance to Iran not only in the field of political and security but also in the economic sphere.

With the US invasion in 2003, the fall of Saddam Hussein, and the rise of Shiites in Iraq, Iran’s relations with Iraq have expanded in various areas, making Iraq one of Iran’s most important political, economic, and cultural neighbors. Currently, Iraq is significant to Iran not only in the political-security field but also in terms of economic.

Iran’s economic activities and influence in Iraq are not limited to trade between the two countries, but it also includes other domains that mainly operate through the proxies and other groups Iran supports in Iraq. The economic influence of Iranian-backed groups is so deep and worrying that the influence attracted a lot of attention. For example, in the December 2020 issue of Foreign Policy, a length analysis was devoted to the topic. According to the analysis, if instability in Iraq deepens, the Iran-backed groups would take full control of revenue sources such as oil fields, ports, border crossings, large businesses, agricultural land, and private property.

Iraqi Economy, Iran, IRGC, Iranian-Backed Shiite Militants

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