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IRAQ WARS
Iraq likely theater if US, Iran tensions worsen: study
by Staff Writers
Washington (AFP) Jan 16, 2019

Iran FM says Tehran wants to rebuild Iraq after IS fight
Karbala, Iraq (AFP) Jan 16, 2019 - Iranian firms should have a key role in rebuilding Iraq after the fight against the Islamic State group, Tehran's top diplomat said Wednesday in a rare meeting with Iraqi paramilitary units.

Foreign Minister Mohammad Javad Zarif spoke in Iraq's holy city of Karbala to commanders of the Hashed al-Shaabi, which is dominated by Iran-backed Shiite groups opposed by Washington.

"The world has realised the truth -- that the US wasn't the one who defeated Daesh (IS). You were, and that's why they exerted pressure on you and on us," he told gathered commanders in Farsi.

After IS overran nearly a third of Iraq in 2014, the Hashed's auxiliary units partnered with Iraqi forces for three years to fight the jihadists.

Many Hashed factions receive military and political support from Iran.

Some commanders have been blacklisted by the US, which also reimposed tough sanctions on Iran last year after pulling out of an international deal on Tehran's nuclear programme.

Now, as Iraq looks to rebuild, Zarif said Iranian firms should be favoured because of his country's support and the complex logistics of partnering with Western companies.

"If a European or American company comes to Iraq to do rebuilding activities, the costs of protecting their workers and staff in Iraq exceeds its contract for reconstruction," he told commanders.

But an Iranian company could help rebuild at "low cost" and without security concerns, after having "stood alongside the Hashed".

IS and the battle to defeat it ravaged swathes of Iraq and shattered its economy. Last year, Baghdad said its 10-year reconstruction plan will cost an estimated $88.2 billion.

One Hashed commander said his units were grateful to Iran.

"The main reason Iraq could persevere in the face of terrorism is the fact that Iran stood by its side. Everyone rejects America's entry into Iraq," said Abu Ammar Al-Jubury.

Zarif spoke to the commanders on his fourth day in Iraq, where he has met top officials in Baghdad and the Kurdish city of Arbil, and attended a trade summit.

Iran is the second-largest source of imported goods in Iraq.

Besides canned food and cars, Baghdad also buys 1,300 megawatts of electricity and 28 million cubic metres of natural gas daily from Iran to feed power plants.

As tensions between the US and Iran escalate, Iraq has played a careful balancing act to maintain ties to both.

Iraq could bear the brunt if conflict intensifies between Iran and the United States, a think-tank study said Wednesday.

The International Crisis Group (ICG), which researches ways to prevent war, interviewed officials around the world including from Iran for an extensive report on the state of the 2015 denuclearization accord between Tehran and major powers.

President Donald Trump has withdrawn the United States and ramped up economic pressure aimed at isolating Iran, although Europeans still back the accord negotiated under former president Barack Obama.

The ICG said Iran would likely continue to comply with the deal, seeing itself as holding the moral high ground and capable of waiting out Trump, who faces a re-election battle next year.

But the study said that Tehran's calculations could change if its oil exports, which stood at 3.8 million barrels a day in 2017, fall below 700,000, a level that could trigger hyper-inflation and intensify domestic protests which for now appear manageable.

If Iran decides to retaliate against the United States, the report said that Tehran may find its most attractive option to be to employ its proxies around the Middle East, a path that would be murky enough to avoid a strong European reaction.

The report quoted a senior Iranian national security official as saying that the likeliest theater was Iraq, where militias from the Shiite majority have close ties with Tehran.

"Iraq is where we have experience, plausible deniability and the requisite capability to hit the US below the threshold that would prompt a direct retaliation," the official was quoted as saying.

Iran is also deeply involved in Syria and Lebanon, but the two countries are especially fragile and Tehran could lose its gains, the official said.

Iran has limited assets in Afghanistan, while stepping up support for Huthi rebels in Yemen would hurt regional rival Saudi Arabia more than the United States, the official said.

The Wall Street Journal reported Sunday that Trump's hawkish national security advisor, John Bolton, asked for military options to strike Iran after an Iranian-linked group launched a mortar attack in September on Baghdad's "Green Zone," the protected area where the US embassy is located. The US says its embassy was the target.

No one was hurt and demonstrators also ransacked the Iranian consulate in Basra during the wave of protests over economic conditions in Iraq.

Bolton, in a tweet marking the third anniversary of the accord's implementation, described the deal as "horrible," saying it "gave Tehran billions in sanctions relief but didn't end its nuclear ambitions, missile tests, support for terrorism or regional expansionism."

European allies say the accord has successfully curbed Iran's nuclear program, even though there are other areas of concern.


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