The U.S. Treasury has asked Iraq to close all but two border crossings with Iran to intensify economic pressure on Tehran. Iraqi Foreign Minister Fuad Hussein confirmed ongoing discussions with Washington while warning that closing the routes would severely damage Iraq's economy. The request comes amid broader disruptions, with Iraq reporting $60 billion in losses from regional conflict and oil export challenges, alongside temporary border shutdowns to curb smuggling.
US border crossing demand
- ▪Iraqi Foreign Minister Fuad Hussein said the U.S. Treasury requested that Iraq close all border crossings with Iran except for two, with one exception located in the Kurdistan region, to increase economic pressure on Tehran
- ▪In October 2026, Iraq closed its Sheeb border crossing with Iran to conduct security reviews and install detection equipment designed to curb smuggling
Washington Iran pressure campaign
- ▪Iraqi Foreign Minister Fuad Hussein said Iraq reached understandings with the United States to permit Iraqi oil exports to navigate through the Strait of Hormuz via a dedicated shipping lane near Oman
- ▪Iraqi Foreign Minister Fuad Hussein said the U.S. demand to shut Iran-Iraq border crossings forms part of Washington's broader policy of escalating economic pressure against Tehran
Iraq economic vulnerability
- ▪Iraqi Foreign Minister Fuad Hussein stated in an Al Jazeera interview that shutting all border crossings with Iran would be difficult and damaging to Iraq's economy
- ▪Iraqi Foreign Minister Fuad Hussein stated that Iraq's financial losses resulting from the war with Iran and associated oil export disruptions reached $60 billion
Iraq-US diplomatic negotiations
- ▪Iraqi Foreign Minister Fuad Hussein disclosed the U.S. border closure request during an interview with Al Jazeera broadcast on November 8, 2026
- ▪Iraqi Foreign Minister Fuad Hussein confirmed that Iraqi officials remain engaged in discussions with the United States regarding demands to close Iranian border crossings
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