Iraq Trapped Between Iran and US: Energy Infrastructure Under Att 2026

Iraq is trapped between Iran and the US as recent drone attacks on Basra oil fields highlight the country's weakened sovereignty and energy infrastructure vulnerabilities. The strikes have targeted BP-operated oilfields, cargo terminals, and compounds housing US companies like Halliburton and KBR, exposing how easily foreign powers can violate Iraqi territory.

The Geopolitical Trap: Balancing Iran and the US

For decades, Iraq has been a battleground for influence between Iran and the United States. Following the 2003 invasion, US military presence and corporate interests became deeply embedded, while Iran cultivated powerful Shia militia factions. The killing of Ayatollah Ali Khamenei by US and Israeli forces ignited a regional war, leaving Iraq no safe ground.

These militias, often acting on Iranian orders, launched attacks on oil infrastructure to pressure foreign companies into leaving. The result is a dual crisis: Iraq cannot control its own airspace or protect its primary revenue source, while its government issues empty statements about sovereignty.

Drone Strikes on Basra's Oil Industry

On 6 March, a drone strike hit a compound used by Halliburton and KBR, starting a massive fire. Iranian drone boats later attacked two oil tankers off Basra, killing a crew member. Hundreds of foreign workers evacuated, and thousands of Iraqi workers were sent home. No group claimed responsibility, but evidence points to Iran-backed factions operating on Iraqi soil.

Impact on Global Energy Markets

Iraq is OPEC's second-largest producer, and attacks on its southern oil fields threaten global supply. The table below summarizes recent incidents:

Key takeaways:

• Iraq's energy infrastructure is increasingly vulnerable to drone attacks from Iran-backed militias.
• The central government in Baghdad lacks the capacity to assert sovereignty over its own territory.
• Foreign companies are evacuating personnel, further destabilizing Iraq's economy.
• The US and Iran's proxy war has turned Iraq into a primary battleground with no end in sight.

Why Iraq Cannot Escape

Iraq's predicament is rooted in its geography and history. Sandwiched between two hostile powers, it relies on Iranian gas imports while hosting US military advisors. The militias are deeply integrated into the state's security apparatus, making it impossible for Baghdad to crack down without triggering a civil war. Energy revenues fund 90% of the budget, so any disruption threatens national collapse.

What Happens Next?

Unless a broader ceasefire between Iran and the US emerges, Iraq will continue to suffer. The country may be forced to choose sides, but any decision will alienate a major internal faction. For now, the drones keep flying, and Iraq remains trapped between Iran and the US.

FAQ