Iraqi Prime Minister Ali Al Zaidi’s recent secret visit to Tehran, requested by the United States, highlights Baghdad’s mediation role amid heightened US-Iran tensions. Washington has pressed Iraq to close most border crossings with Iran, citing security concerns, prompting Baghdad to intensify border checks, grant its army exceptional powers, and prepare emergency plans. Iran has stated that bilateral ties will withstand this pressure, while diplomatic channels remain active through foreign minister calls focused on regional stability and potential negotiations. A drone strike on Iraq’s Khor Mor gas field has further underscored spillover risks from the broader conflict. These developments shape trader assessments of near-term Iranian military actions against Iraqi targets, particularly in the Kurdistan region, alongside ongoing militia alignments and economic interdependence between the neighbors.