DINAR REVALUATION UPDATE: IRAN -US AGREEMENT : KEEPING IRAQ OUT OF MIDDLE EAST TENSIONS, 23 AUGUST

 Iranian-American Agreement to Keep Iraq Neutral in Middle East Events (2024)

In the tumultuous landscape of the Middle East, Iraq has emerged as a pivotal player in regional dynamics, often caught between the influences of Iran and the United States. As of August 22, 2024, the relationship between Iran and the United States has led to an agreement aimed at keeping Iraq away from the region's escalating conflicts. 1

The Background of the Agreement

The war in Gaza, which began in October 2023, has intensified the existing tensions between Iran and its proxies on one side, and the United States and Israel on the other. 1 This cycle of tit-for-tat attacks across the region, involving the Israeli bombing of the Iranian consulate in Syria and Iran's direct retaliation against Israel, threatens to escalate into a broader regional war. The conflict has also drawn Iraq into the fray, with Iranian-backed paramilitaries attacking U.S. forces stationed in the country.  1

Iraq's Strategic Position

Iraq's role in this complex equation is not that of a mere pawn. Its strategic position and the nature of its relationship with Iran have evolved significantly since the U.S. invasion in 2003. While Iran's influence in Iraq has grown, it is not a simple agent-proxy arrangement. Iran wields significant power through its paramilitaries' presence in Iraq's security apparatus, but Iraq has also shown political independence, maintaining a degree of leverage over Iran. 1

The Agreement's Objectives

In light of the escalating tensions, the Iranian-American agreement seeks to ensure Iraq's neutrality, preserving the relative stability the country has enjoyed in recent years and safeguarding its role as a regional mediator.  1 The accord is designed to prevent Iraq from being drawn further into the conflict, which could destabilize the region and undermine efforts to resolve the ongoing war in Gaza and the broader Israeli-Palestinian conflict. 1

European Engagement

Europeans have a role to play in supporting Iraq's autonomy and stability. By strengthening Iraq's financial institutions through global integration and digitization, European countries can help increase Iraq's economic independence. 1Furthermore, European nations can collaborate with Gulf states to broaden ties with Iraq, moving away from a development or humanitarian aid framework towards normal bilateral relations. 1

Conclusion

The Iranian-American agreement to keep Iraq out of the Middle East's conflicts is a critical step toward maintaining regional stability. However, its success hinges on broader efforts to resolve the Gaza conflict and the Israeli-Palestinian dispute. European involvement in supporting Iraq's autonomy and economic resilience is essential for any policy to be effective in this volatile region.