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Iraq deepens Iran ties days after US investment push

The Iraqi premier visited Tehran shortly after his trip to Washington for talks focusing on economic cooperation and plans to develop a cross-border railway network.

Iranian Presidential Office / AFP via Getty Images
This handout photo provided on July 23, 2026, shows Iranian President Masoud Pezeshkian (C-R) along with his delegation speaking with Iraqi Prime Minister Ali al-Zaidi (C-L) and his delegation during their meeting in Tehran. — Iranian Presidential Office / AFP via Getty Images

Iran and Iraq signed a series of agreements on Thursday aimed at boosting economic, transportation and political cooperation during Iraqi Prime Minister Ali al-Zaidi’s visit to Tehran. The trip comes days after Zaidi’s trip to the United States, during which major energy deals were announced as Iraq seeks to balance ties with both countries. 

What happened: Zaidi and Iranian President Massoud Pezeshkian held talks on bilateral relations, including the joint economic committee between Iraq and Iran, before the two countries made the following deals, according to official announcements from both:

  • An agreement on road transportation for international freight
  • A memorandum of understanding on extending the planned Kermanshah-Baghdad railroad
  • An MoU to make Baghdad and Tehran twin cities
  • An MoU on government administration and human resources training

In a readout following the visit, Zaidi’s office said the two countries also agreed to work toward completing the Basra-Shalamcheh railway project, cooperate on environmental issues such as drought and draft a “strategic document” aimed at boosting cooperation across multiple fields.

Zaidi met with Iranian parliament speaker Mohammed Bagher Galibaf and Iranian judiciary chief Gholamhossein Mohseni Ejei later on Thursday. Galibaf is one of Iran's chief negotiators with the US and the two discussed bilateral relations and regional developments, Zaidi's office said.

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