Tehran’s control over Baghdad may create conditions for more extreme protests, expert tells ‘Post’

Protests in Iraq, initially small due to delayed July salaries for state employees, could escalate into violence if payment issues persist, according to Dr. Ronen Zeidel. Iraq's economy, heavily reliant on oil, faces challenges from an oil export crisis and US controls over its oil revenues held in the Development Fund for Iraq (DFI) in New York. The US uses this leverage to push for reforms in Iraq's banking system, which has been implicated in money laundering and transfers to Iran. Zeidel noted, "When you don't export your oil, and oil is the main product of the Iraqi economy, you don't have money." He added that the US's control over dollar releases further complicates Iraq's financial situation. The expert highlighted Iraq's geopolitical predicament, caught between financial dependence on the US and reliance on Iran for crucial gas supplies, especially during extreme temperatures. Iran, which supplies 30-40% of Iraq's gas, has reportedly demanded $11 billion in accumulated debts, rejecting Iraq's offer to pay $1 billion to Saudi Arabia for Iran's Hajj fees. Zeidel stated, "Iran doesn't like the fact that the Americans are getting into Iraq and to its economy on such a massive scale," indicating potential for further instability.