Iraq Trapped in Iran War's Crossfire: Attacks Rock Its Territory
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Iraq Caught in Iran War Crossfire: Economic Collapse Looms Amid US-Iran Proxy Battles
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News18•13-03-2026, 19:45
Iraq Caught in Iran War Crossfire: Economic Collapse Looms Amid US-Iran Proxy Battles
•Iraq is caught in the crossfire of the Iran war, facing attacks from both US and Iran-backed forces on its soil.
•Disruptions to Gulf shipping and oil exports threaten Iraq's economy, risking inability to pay public sector salaries as soon as next month.
•Near-daily drone strikes target American interests and oil infrastructure, with the US retaliating against Iran-backed militia bases.
•A caretaker government with limited powers struggles to control powerful Iran-backed militia groups, exacerbating political instability.
•Loss of oil revenue, power supply disruptions, and internal divisions increase the risk of widespread unrest and financial collapse, particularly in the Kurdistan region.
