US sanctions on Iran will pressure Iraq, UK research center warns

TEHRAN, Iran — LONDON — A British research center has warned that renewed US sanctions on Iran will intensify economic and financial challenges for Iraq, which has long served as a channel for Tehran to circumvent restrictions. Tom Keating, director of the Centre for Financial and Security Studies at the Royal United Services Institute (RUSI), said Iraq has been used as an effective route for Iran to evade sanctions and that tighter enforcement of US financial measures against Tehran could deepen Iraq's existing vulnerabilities. He urged Iraq's banking system and informal financial sector to prepare for growing strains and called on the United States to expand technical support to the Central Bank of Iraq and the Iraqi government rather than rely solely on punitive measures. Neil Quilliam, an expert at Chatham House, said US pressure has already raised the costs and risks of financial transactions with Iran, pushing Iraqi institutions to strengthen compliance. Quilliam noted that the pressure has not severed economic ties altogether but that Iraq has more limited options for financial resilience than countries such as China or Turkey. Both analysts spoke to the London-based newspaper Asharq Al-Awsat.