Iran’s President Rouhani Looks to Bolster Trade With Iraq to Beat US Sanctions

Iranian President Hassan Rouhani is visiting Baghdad this week to meet with top Iraqi officials. The three-day talks are expected to center on trade, and particularly in keeping natural gas exports flowing into Iraq going forward.

Iraq needs this natural gas for its energy production, and the two countries are on good terms, so this seems a fairly obvious trade deal to keep intact. US sanctions, however, have an eye toward threatening this, and most other Iranian trade worldwide.

Iraqi officials have expressed opposition to US sanctions, and suggested they would defy them if the US fails to come forward with waivers. Trade with neighboring Iran is just too important, and losing access to natural gas in particular would be potentially disastrous to Iraq’s electricity production.

Maintaining close economic ties with Iran is very important for the Iraqi people, as well. When the ISIS war began and Mosul fell, there was a financial panic in Iraq, and many Iraqi investors moved their funds to Iran. US sanctions not only harm those investments but are threatening to prevent Iraqis from getting their money back because of banking sanctions.