Iraq's outreach to Turkey and Iran

In late July 2026 Iraqi Prime Minister Ali Zaidī pursued parallel diplomatic tracks with Turkey and Iran. On 22 July he met Turkey’s transport minister in Baghdad to discuss financing and a timetable for the 1,200‑km “Development Road” rail‑highway linking the Port of Faw to the Turkish border, as outlined in a 2024 quadrilateral agreement. The same day he began a two‑day visit to Tehran. In Tehran he met President Masoud Pezeshkian, signed memoranda covering foreign affairs, finance, energy and transportation, and discussed the import of Iranian gas and the revival of the Basra‑Shalamcheh railway. Zaidī presented a U.S.–backed cease‑fire proposal; Iranian Foreign Minister Abbas Araghchi rejected it, saying it omitted any provision on control of the strategic Strait of Hormuz, which Tehran deems non‑negotiable. Iran warned that a U.S. “massive attack” could broaden the conflict, mentioning possible strikes on Tel Aviv and urging Houthi forces to close the Bab al‑Mandab strait. The rejection came as U.S. Central Command reported a 13th consecutive night of strikes on Iranian positions and global oil prices rose above $100 per barrel, underscoring Iraq’s emerging role as a mediator while its economy remains tightly linked to Iran’s gas, electricity and $12 billion‑annual trade.