As Washington tightens its economic pressure on Iran, neighboring Iraq is emerging as one of Tehran’s most important financial lifelines. The two nations share roughly 1,600 kilometers of border, along with extensive political, religious, and commercial connections that provide Iran access to Iraqi markets, trade routes, currency exchanges, and banking networks. U.S. authorities have previously documented Iraqi financial institutions being used to move dollars to Iran and Iran-backed armed groups, while analysts say informal networks continue operating despite tighter American restrictions. Iraq is now under growing pressure from Washington to strengthen oversight of dollar transactions and its banking sector as Tehran searches for ways to keep money and goods moving despite increasingly severe sanctions.
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