In: Economics
Iraq's national interests in building military capability, reviving the energy sector, meeting domestic water and energy demand and growing trade and investment have led Baghdad to restore relationships with regional and global partners. Iraq's rapidly increasing economy is emerging as a growth driver for the Middle East and a major player in the global energy markets. Cooperation with Washington on counter-terrorism and multibillion dollar weapons deals with Russia and the United States have been the cornerstones of Iraq's international security stance.
Contracts with Western, Chinese and Russian energy firms have revitalized their oil sector and Baghdad has built ties with Iran, Turkey, several Gulf countries, Jordan and Syria to help meet their coal, water and electricity needs. Erbil and many leaders of the Sunni Arab opposition have pursued their own foreign relations and international priorities which often conflict with official foreign policies of Baghdad.
Baghdad has supported the Syrian regime somewhat, while in the ongoing civil war, Erbil and Iraqi Sunnis have sided with the rebels. This has intensified the division of Iraq by moving Baghdad closer to Iran, another supporter of Damascus, while bringing Iraqi Kurds and Sunnis closer to Turkey and the Gulf countries supporting the Syrian opposition.
Developments in Damascus will affect external relations with Iraq. A resurgent Syrian regime will strengthen Baghdad and its ties to Iran, while victories of the opposition will empower alternative centers of power in Iraq and force Baghdad to reconsider its regional alignments. Any thaw in Iran's relationship with the West — like Tehran's recent nuclear agreement with several world powers — will alleviate tensions in Iraq's foreign policy.