Iraq and Iran sign agreements strengthening ties on energy, finance, and regional security.

Iraqi Prime Minister Ali al-Zaidi has arrived in Iran for his first official trip since taking office this past May. He met with top officials in Tehran to push deeper ties between Baghdad and Tehran. The Iraqi News Agency reported on Thursday that leaders Masoud Pezeshkian and al-Zaidi signed multiple agreements covering finance, energy, foreign affairs, and the economy.

These talks focused on building strategic cooperation and speeding up joint infrastructure projects. Both sides also agreed to coordinate closely on regional developments, including steps related to the US-Iran MoU. Al-Zaidi addressed a combined meeting of delegations from Iraq and Iran. He thanked Tehran for its aid during the fight against ISIL. He stated clearly that Iraq will not accept hostile actions directed at Iran by any group or nation.

"Iraq will never forget Iran's support in the fight against the terrorist group," al-Zaidi said, according to Pezeshkian's office. President Pezeshkian added that a new plan would guide expanding relations between the two neighbors. He stressed their security is tightly linked. A joint statement issued after the visit noted that regional crises need dialogue and diplomacy to solve them peacefully. Both nations backed political solutions based on international law.

Leaders agreed to draft a long-term strategic cooperation agreement now. Foreign ministers will finish this draft for governments to sign later. They also planned to speed up trade, banking ties, energy links, and transport routes. The Basra-Shalamcheh railway project gets a push forward under these new plans. Officials removed legal blocks stopping joint projects from moving ahead fast enough.

The two nations agreed to hold their Joint High Commission once every year. This body will alternate between Tehran and Baghdad under prime minister leadership. Iraq relies heavily on Iranian gas and electricity for its power grid. Bilateral trade already crosses the $12bn mark annually, making Iraq one of Iran's biggest partners. Millions of Iranian Shia pilgrims cross into Iraq yearly to visit holy sites there.

Iran's Supreme Leader Ayatollah Ali Khamenei died earlier this month, sparking a week-long funeral that saw his procession march through Najaf and Karbala in Iraq. These cities are holy sites for Shia pilgrims across the region. While the mourning occurred, the Iranian government has been building strong bonds with powerful Shia political parties and armed militias within Iraq's own security forces.

Baghdad now faces a hard balancing act. It must keep its doors open to both warring factions while also managing relations with Washington and Tehran. Political analyst Ghaleb Al-Daami spoke with Al Jazeera about this tightrope walk. He noted that the recent visit by al-Zaidi carried two heavy messages. Iran was told directly to halt its backing of armed groups operating inside Iraq. At the same time, officials delivered a clear note from the United States. This message supports Iraq taking on a mediating role in the ongoing war between Washington and Tehran.

A joint statement released after these meetings also backed the Palestinian cause. Both nations agreed to support an independent Palestinian state with East Jerusalem as its capital. The timing of this agreement matters greatly for communities living under tension.