Iraqi Prime Minister discusses Iran-US MOU with Iran's Araghchi

Iraqi Foreign Minister Fuad Hussein recently held a meeting with Iranian Foreign Minister Abbas Araghchi to discuss regional developments, including the U.S.-Iran Memorandum of Understanding (MOU) signed earlier this month. During the meeting, Hussein emphasized the importance of reopening the Strait of Hormuz and lifting the naval blockade, which has severely impacted Iraq’s economy. The country relies heavily on oil exports, with 90 percent of government revenue derived from this sector. The blockade had pushed Iraq to the brink of an economic crisis, with the foreign minister warning that continuation of hostilities could lead to further regional destabilization.

Araghchi, in turn, stated that Iran is committed to continuing cooperation with Iraq’s new government and outlined strategic ties between the two nations. He also provided details on the U.S.-Iran MOU, which includes provisions for release of seized Iranian funds and a permanent ceasefire. While the agreement is expected to ease regional tensions and restore maritime traffic through the Strait of Hormuz, the responsibility for bringing back pre-war levels of activity lies solely with Iran.

The reopening of the Strait is seen as a critical step for Iraq’s economic recovery, offering a lifeline to resume oil exports and stabilize government finances. However, the long-term implications of the U.S.-Iran deal for Iraq remain uncertain, particularly given Iran-backed militias and complex political landscape.