Iraq’s al-Zaidi talks to Trump as Baghdad seeks to stay out of war on Iran

The phone call between the two leaders came as Iraq's foreign minister urged armed groups not to join any Iranian retaliation, warning it would be disastrous for Iraq. Al-Zaidi's office stated that the two men discussed the evolving situation in the region, security developments, and prospects for the next phase.

The prime minister reaffirmed Iraq's call for respect for the sovereignty of states and emphasized that Iraqi territory would not be used as a launching point for attacks against neighboring countries. He also stressed the need for diplomacy and dialogue to safeguard the region's security and stability.

Economic Impact

Since the war began, Iraq has lost more than $60 billion in oil revenues, as about 90 percent of its oil exports normally pass through the Strait of Hormuz and were largely cut off when Tehran closed the waterway. Oil accounts for about 90 percent of Iraq's federal budget.

Since then, Iraq has been one of the few countries that have been granted exemption by Iran to pass freely through the Strait of Hormuz, providing some relief to its economy.

Neutral Stance

Iraq, which neighbours Iran, has struggled to maintain a balancing act between US and Iranian interests since Trump launched the war on Iran in February. Since taking office in May, al-Zaidi has prioritised the disarmament of all fighter groups in the country, including several powerful pro-Iran groups.