U.S. confirmed in a message to Iraq its strong desire to ensure that Iraq is not drawn into ongoing war with Iran - Iraq's state news agency citing source

U.S. confirmed in a message to Iraq its strong desire to ensure that Iraq is not drawn into ongoing war with Iran - Iraq's state news agency citing source

U.S. Assures Iraq It Seeks to Avoid Regional Escalation in Iran Conflict

The U.S. has conveyed its commitment to preventing Iraq from becoming entangled in the escalating military conflict with Iran, according to Iraq's state news agency, which cited an unnamed source. This assurance comes as the U.S. and Israel launch coordinated strikes against Iranian targets, while Iran retaliates across the Gulf, raising fears of a broader regional war.

The U.S. military has dubbed its operations "Operation Epic Fury," targeting Iranian nuclear facilities and military infrastructure. Meanwhile, Iran has launched missile attacks on U.S. allies in the Gulf, including Bahrain, Kuwait, Qatar, and the UAE, with the Islamic Revolutionary Guard Corps (IRGC) vowing to continue strikes until "the enemy is decisively defeated." Despite the volatility, the U.S. has emphasized that its actions are aimed at curbing Iran's nuclear program and protecting regional allies, not expanding the conflict.

The financial implications of the conflict are significant. Gulf states have closed their airspaces, disrupted trade routes, and activated emergency protocols, heightening uncertainty for global energy markets. Oil prices have surged amid fears of damage to critical infrastructure, though the extent of market disruption will depend on the conflict's duration and containment.

Diplomatic efforts remain fragmented. While Oman's foreign minister previously expressed optimism about resuming nuclear negotiations, talks have collapsed following the military escalation. The U.S. has not ruled out further strikes but has also signaled a desire to avoid prolonged warfare, with Vice President JD Vance stating, "The idea that we're going to be in a Middle Eastern war for years with no end in sight—there is no chance that will happen".

For Iraq, the U.S. message underscores strategic priorities to stabilize the region and protect economic interests, including oil exports. However, the conflict's ripple effects—such as heightened defense spending, trade disruptions, and inflationary pressures—pose risks to both regional economies and global markets. Investors are closely monitoring developments, with analysts cautioning that prolonged instability could exacerbate existing geopolitical and economic vulnerabilities.

The Guardian, Washington Post: The Guardian, Washington Post
CBS News: CBS News
Al Jazeera: Al Jazeera