The oil-rich port city of Basra is feeling the heat of the intensifying conflict between the United States and Iran. Pro-Iranian armed groups that threaten the United States from time to time are active in the city. The US-Iran tension is expected to affect the economic situation in Iraq in general, and in Basra in particular.
The US State Department announced Sept. 28 its intention to close its consulate in Basra and pull out its diplomats. This comes after three mortar shells targeted the US Consulate there.