Iran… And The Policies of Domination In Iraq

An Iraqi female demonstrator attends the ongoing anti-government protests in Baghdad, Iraq November 1, 2019. REUTERS/Ahmed Jadallah
An Iraqi female demonstrator attends the ongoing anti-government protests in Baghdad, Iraq November 1, 2019. REUTERS/Ahmed Jadallah
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Iran… And The Policies of Domination In Iraq

An Iraqi female demonstrator attends the ongoing anti-government protests in Baghdad, Iraq November 1, 2019. REUTERS/Ahmed Jadallah
An Iraqi female demonstrator attends the ongoing anti-government protests in Baghdad, Iraq November 1, 2019. REUTERS/Ahmed Jadallah

After a painful and agonizing eight-year war with Iraq, Iran worked to rebuild its industrial, economic, scientific, and military infrastructure, which the war heavily destroyed, and to engage in formulating a new strategy throughout the region, based on deterring threats from neighboring countries or the Middle East.

In other words, the Persian state sought relentlessly and thoughtfully to expand its influence in several directions, in order to prevent the recurrence of any scenario that would endanger the Islamic revolution and its ruling regime.

The country was lucky enough in 2003 when its interests converged with Washington’s decision to topple Saddam Hussein’s regime. Here, Iran had a golden opportunity to interfere in Iraqi affairs and work to consolidate Shiite influence in it.

Iran began expanding the base of the Shiite political forces inside Iraq and devoted all its political, security and financial efforts to achieving this goal. It drove on several parallel axes to influence and try to control the Iraqi decision, by engaging directly with the new Iraqi leaders who supported it when they were in the opposition.

When ISIS came out in 2014, occupied about a third of Iraq’s area and tightened its control over major cities in the north, west, and central Iraq, Tehran was quick to provide the country with weapons, equipment, experts, and advisers.

Led by General Qassem Soleimani, the commander of the Iranian Quds Force, the war against ISIS was fought by the Popular Mobilization Forces, which are mostly armed factions loyal to Tehran.

Soleimani was the spiritual father and the military and ideological commander of these factions.

When the war ended, some of these factions turned into political movements, with the aim to expand the base of Shiite sympathizers with Tehran. Those participated in the 2018 elections and won, as expected, due to two factors: the Iraqi street acknowledging their role in eliminating the threat of ISIS, and the unlimited Iranian support they received during the electoral race.

The new movement enjoyed a wide and influential representation in the Iraqi parliament, and it was not satisfied with that; rather, it hurried to form a strong coalition gathering about 45 seats. This coalition was the nucleus of a larger alliance – Al-Binaa, which is now leading the Iraqi political scene.

Obviously, Al-Binaa Alliance had a great role in choosing the speaker of parliament and naming the prime minister. It also worked on enacting a new law for a new military institution - the Popular Mobilization Authority – to which it earmarked a large budget as of 2019.

The components and factions within Al-Binaa also acquired an abundant share of ministerial seats, positions, and senior ranks in the country. This contributed greatly to strengthening economic ties with Tehran, and the volume of Iranian exports to Iraq reached about $15 billion.

When the dispute between the US and Iran intensified following the missile attack that targeted Qassem Soleimani and Vice President of the Popular Mobilization Authority, Abu Mahdi Al-Muhandis, near Baghdad International Airport, Al-Binaa Alliance adopted a parliamentary resolution calling for the exit of foreign forces from Iraq, specifically intended for US forces.

It is noteworthy that Iran has strong relations with other components, such as the Sunnis and the Kurds, and has close ties to some of the Sunni political forces and the ruling Kurdish parties. This allows it to serve its interests at the local and regional levels.

The Iranian influence equation changed after two important events: First, the unprecedented mass demonstrations erupting in Baghdad and the cities of central and southern Iraq in October 2019; second, the assassination of Soleimani and Al-Muhandis and their absence from the scene.

The repercussions of the first event reached the point of hearing loud chants from Iraqi youth in Shiite cities, foremost of which are both Najaf and Karbala, denouncing the Iranian presence and calling for its ousting.

On the other hand, the assassination of the two leaders greatly affected the strength of the Iranian presence inside the Iraqi arena, and it seemed difficult to find other figures to replace them and compensate for the significant influence they had in the Shiite and popular political circles.

Moreover, there is a difference of visions about the future of politics in Iraq, as Iran is based on the principle of Wilayat al-Faqih”- while the authority in Najaf does not agree with this approach.

Sayyed Ali Al-Sistani had previously opposed Iraq’s commitment to “Wilayat al-Faqih.” He worked hard to curb Iranian influence in Najaf and cut the way for Iraq to be implicated in Iran’s regional and international conflicts, through Friday sermons delivered by his representatives.

There is no doubt that Iran is now in the process of reviewing its regional policy, by drawing roles, identifying tools and creating new influencing factors...

More importantly, Tehran is studying how to deal with the Iraqi interior and the region in light of the ongoing conflict with the US, not to mention that the Iranian economy has become weaker than ever, and the people are suffering from both the regime policies and the repercussions of the US sanctions.

Therefore, the Iranian leadership is now reviewing its calculations - in Iraq in particular – which was reflected in its non-interference in the formation of the expected government of Muhammad Tawfiq Allawi, while its fingerprints were long seen in all successive Iraqi governments.



Investors Prosper and Consumers Pay as the Iran War Exacts an Uneven Economic Toll 6 Months in

People walk near an anti-US mural in Tehran, Iran, July 15, 2026. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
People walk near an anti-US mural in Tehran, Iran, July 15, 2026. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
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Investors Prosper and Consumers Pay as the Iran War Exacts an Uneven Economic Toll 6 Months in

People walk near an anti-US mural in Tehran, Iran, July 15, 2026. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
People walk near an anti-US mural in Tehran, Iran, July 15, 2026. Majid Asgaripour/WANA (West Asia News Agency) via Reuters

As the US and Israel relentlessly bombed Iran in the opening days of war, the most dramatic predictions of the conflict’s toll were unsparing: surging oil prices, worldwide recession and economic catastrophe.

But six months into the conflict, the direst predictions haven’t come true even if no corner of the world's economy has been untouched.

“So far, the global economy has pulled off the financial equivalent of a ‘Mission Impossible’ scene,” said Michael Ashley Schulman, an investment strategist with Cerity Partners.

Here's a look at how the global economy has weathered the war, and who have been the winners and losers:

Winner: Investors who didn’t panic

Stock markets hate uncertainty, and the decision by the US and Israel to attack Iran on Feb. 28 delivered heaps of it. Columns of smoke rose from Tehran, frantic Iranians clogged roadways trying to escape, and mounting deaths, including of children, made headlines. It was enough for any investor to feel squeamish.

Oil prices surged and Wall Street began a retreat that would begin five consecutive losing weeks. The Dow and Nasdaq entered corrections. The S&P 500 had its worst month since 2022.

But a major turnaround has unfolded since the market bottomed in late March. The Dow has gained nearly 19%, the S&P is up almost 22% and the Nasdaq has surged 27%. If those gains survive the waning months of 2026, all three indexes would post their fourth consecutive year of gains.

The International Monetary Fund, in a July report, said the economy was “being shaped by two major forces, pushing in opposite directions.” The war has strained growth, but enthusiasm over artificial intelligence has offset the drag.

Main Street may be paying more for fuel, food and travel. But Wall Street, so far, is shrugging it off.

Loser: Anyone on the move

The war's most obvious economic consequence has been its impact on oil. With tanker movement through the Strait of Hormuz slowed to a crawl, the price of Brent crude climbed from a prewar close of about $72 a barrel to as high as nearly $120. Although prices have eased, they are still up about 20% from before the war.

Oil's price affects everything from crayons to cosmetics, but it hits anyone on the move especially hard.

Jet fuel is expected to cost, on average, 70% more than in 2025, according to the International Air Transport Association. Airlines, in turn, have raised ticket costs, hiked baggage fees and slapped on fuel surcharges while slashing flights or backing off from plans for added routes. Lufthansa Group, for one, cut 20,000 short-haul flights. Spirit Airlines, though troubled for years, evaporated.

“The likelihood that fuel surcharges are going to be rolled back and airfares are going to be brought down is very low over the next few months,” said Brett House, a Columbia University economist. “There is less choice for consumers and less competition between airlines, and therefore, less pressure to rein in fare increases.”

A plume of smoke rises after a strike on the Iranian capital Tehran, on March 3, 2026. (AFP)

Winner: The case for clean power

With tankers at a standstill and fuel prices climbing, the war strengthened a clean-power sales pitch.

Sales of electric vehicles hit records in some parts of the world. In Singapore, year-over-year growth of EVs reached 110%. In New Zealand, the figure hit 180%. And in Colombia, EVs notched a 300% increase.

Worldwide, EVs are projected to account for 29% of total vehicle sales in 2026, according to an International Energy Agency outlook, up from 25% last year. That growth is even more impressive considering the world’s two biggest economies, the United States and China, saw declining demand for EVs.

Countries that were particularly reliant on Gulf oil have been spurred to action. In Southeast Asia, leaders have rolled out more use of renewable energy and researched deploying nuclear power. In Africa, countries have looked to expand domestic refining and accelerated the installation of solar panels.

Scott Lehmann, a supply chain expert at Sphera, an operational intelligence firm, counts 26 countries and regions that have announced clean energy and electrification measures in response to the war.

“The crisis is forcing investment faster than any policy framework would have,” he said.

Loser: The fight against hunger

For the privileged, the costs brought by war may barely be a blip. For the poorest, it's a different story.

With the Gulf not just a leader in global oil production, but also of fertilizer, the war has dealt a blow to farmers. Just as many were making decisions about their crops, fertilizer prices soared, peaking in April at 44% higher than before the war, according to the World Bank’s price index.

In response, some farmers trimmed their fertilizer use, potentially imperiling next year’s harvests. “If you’re reducing your fertilizer usage right now, it’s in a way borrowing against next year’s soil health,” said Arif Gasilov, a natural resources expert with the Gasilov Group consultancy.

The United Nations World Food Program has warned that tens of millions could be pushed into hunger. In testimony this week, its acting executive director, Carl Skau, said the “suffocation of fertilizer exports” had hit Asia and Africa hard. Higher transportation costs hindered the WFP’s own humanitarian efforts, too.

“An oil tanker anchored in the Strait of Hormuz can mean one less meal a day for a child in Sudan,” Skau said. “When oil prices go up, so does the price of flour, rice and vegetables.”

A drone view shows vessels near the Strait of Hormuz, as seen from Musandam, Oman, August 28, 2026. (Reuters)

Winner: The Trumps’ businesses

The war has already cost the US tens of billions of dollars and caused thousands in Iranian casualties. It has shaved an estimated hundreds of billions of dollars from projected global output.

But the family of the man at the center of it all, President Donald Trump, has been among the beneficiaries.

Military contractor Powerus, about to be taken public by Eric and Donald Trump Jr., won an Air Force contract worth as much as $90 million to supply interceptors to shoot down Iranian drones.

Similarly, the private equity firm 1789 Capital Management, which Don Jr. joined days after his father’s reelection, owns stakes in several other military contractors profiting from the war. One of them, Anduril, won US approval for up to $2 billion in sales of drone interceptors. A second, Elon Musk’s SpaceX, is providing satellite service to guide US drones against Iran. And a third — rocket maker Firehawk Defense — won Pentagon contracts for propellants and warheads to replenish dwindling US supplies.

A spokeswoman for 1789 Capital, Alexa Henning, said Don Jr. wasn't involved in the decision to put money in those companies, so there is no “nefarious connection.”

The president himself has done well, too.

His investment portfolio run by outside managers has scooped up shares of US military suppliers helped by the war, including Lockheed Martin, General Dynamics and Northrop Grumman. Democrats released a report this week saying Trump’s holdings in oil and gas stocks have soared by as much as $15.5 million.

A White House spokeswoman, Anna Kelly, insisted “there are no conflicts of interest” and that “President Trump only acts in the best interests of the American public.”

Even as Trump's personal finances have benefited, his political fortunes are another question. The conflict has been unpopular and could weigh on voters as midterm elections near.


US Military Families Ride ‘Roller Coaster of Emotions’ Over Six Months of Iran War

This US Navy handout photo released on July 15, 2026 and taken on June 30 by US Central Command Public Affairs shows the Carrier Air Wing (CVW) 7 flying in formation over the USS George H.W. Bush (CVN 77) in the Arabian Sea. (AFP / US Central Command Public Affairs)
This US Navy handout photo released on July 15, 2026 and taken on June 30 by US Central Command Public Affairs shows the Carrier Air Wing (CVW) 7 flying in formation over the USS George H.W. Bush (CVN 77) in the Arabian Sea. (AFP / US Central Command Public Affairs)
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US Military Families Ride ‘Roller Coaster of Emotions’ Over Six Months of Iran War

This US Navy handout photo released on July 15, 2026 and taken on June 30 by US Central Command Public Affairs shows the Carrier Air Wing (CVW) 7 flying in formation over the USS George H.W. Bush (CVN 77) in the Arabian Sea. (AFP / US Central Command Public Affairs)
This US Navy handout photo released on July 15, 2026 and taken on June 30 by US Central Command Public Affairs shows the Carrier Air Wing (CVW) 7 flying in formation over the USS George H.W. Bush (CVN 77) in the Arabian Sea. (AFP / US Central Command Public Affairs)

Since the United States went to war with Iran six months ago, Courtney Sanders has been helping soldiers’ families fill the gaps left by their loved ones.

There are school pickups to coordinate, lost incomes to supplement — and the ever-present separation anxiety.

“It's like being on pins and needles all of the time,” Sanders said.

She leads the Chicagoland chapter of Blue Star Families, the nation's largest nonprofit serving military families, and her own daughters are in the US Navy. They have served in various overseas locations over the past six months, including the Middle East.

The US has more than 50,000 troops stationed across the region and has deployed thousands of additional Marines and sailors to support the war effort. Eighteen US service members have been killed in the conflict and more than 750 wounded.

During the war's on-and-off fighting, shuttle diplomacy and failed peace talks, military families have experienced a “roller coaster of emotions,” Sanders said. “The moment that you feel you're able to take a breath, you ‌get gut-punched again.”

These ‌are familiar pressures for the partners and children, mothers and fathers, of American troops. But ‌the ⁠suddenness of the Iranian ⁠conflict, and its fitful pace, have had a compounding effect, relatives told Reuters.

In a Blue Star Families poll of some 200 active-duty military families in early March, 81% reported elevated stress from the Iran conflict.

The group has responded by stepping up its programming, creating online resource hubs, hosting webinars and in-person meet-ups, and matching military spouses going through a deployment for the first time with those who have been through it before.

Many service members' deployments have been extended unexpectedly. The USS Abraham Lincoln aircraft carrier went more than 200 days without a port call — a modern-day record, according to Democratic lawmakers — and military outlets reported suicide attempts and declining morale among its 5,000 sailors and Marines.

US Defense Secretary ⁠Pete Hegseth said the reports “completely misrepresented” the conditions on board.

Some military families find themselves ‌in financial straits.

National Guard members, for example, often work regular jobs when they are ‌not deployed. The sudden loss of their main paycheck can make it hard for those left behind to keep food on the table, Sanders ‌said.

"There is a huge misconception in the civilian world that if you are in the military, all of your bills ‌are taken care of,” she said. “And that is just frankly not true.”

In a statement, the Pentagon said: "We see these families (and) we hear their concerns. We will do whatever is necessary to provide the resources, assistance, and stability they need and deserve during these challenging times."

'A LOT OF EMOTIONS'

Shannon, an Army spouse and mother of three in North Carolina who requested Reuters use only her first name for security reasons, tries to ‌tune out the news and the political debate surrounding the war.

In February, her husband deployed to the region with five days' notice and could only contact her sporadically for the first ⁠several months.

Although they have maintained ⁠near-daily communication since June, "there are a lot of emotions,” Shannon said, “especially when people are dying over there.”

Her children started therapy over the summer. She tries to be strong in front of them, but cries sometimes when they’re not around.

Soon after her husband's deployment, Shannon joined an Army-sponsored soldier-and-family "readiness group" within her husband's unit, helping organize meal trains and other support for family members in need.

"Every day is not going to be a great day, but you've gotta just keep going and keep yourself busy," she said.

In Virginia, Pat, a Navy spouse who also asked to be identified by her first name for security reasons, has tried to keep life as normal as possible for her children, who are in middle and high school.

Since her husband deployed about five months ago, Pat said, her neighbors have been "amazing" about helping with kid pickups and other chores.

Her family wears red on Fridays — a show of support for deployed service members — and so do many of her children's classmates, even those without military connections.

Pat's husband has deployed before. She was pleasantly surprised this time to discover his ship had Wi-Fi, making communication easier.

Still, her family is grappling with the uncertainty of when he will return.

"Having older kids and knowing that dad wasn't there to see those sporting events, some of that's been a little emotional," she said. "But my kids are very resilient."


Data Center Backlash Scrambles US Midterm Politics

In an aerial view, the Stargate Oracle AI data center campus is seen on August 26, 2026 in Abilene, Texas. (Getty Images/AFP)
In an aerial view, the Stargate Oracle AI data center campus is seen on August 26, 2026 in Abilene, Texas. (Getty Images/AFP)
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Data Center Backlash Scrambles US Midterm Politics

In an aerial view, the Stargate Oracle AI data center campus is seen on August 26, 2026 in Abilene, Texas. (Getty Images/AFP)
In an aerial view, the Stargate Oracle AI data center campus is seen on August 26, 2026 in Abilene, Texas. (Getty Images/AFP)

The data centers powering America's artificial intelligence boom have become an unlikely target in November's midterm elections, as anger over rising electricity bills and noise turns Democrats -- and a growing number of Republicans -- against Big Tech.

Candidates in at least 21 races across 18 states have aired television advertisements mentioning data centers this cycle, according to marketing data cited by US media, almost evenly divided between both parties.

On the grid serving Senate battleground Ohio, as well as 12 other states, demand from data centers drove up capacity costs by $9.3 billion in a single year, a 174 percent increase, according to an independent market monitor.

Anger over household bills has merged with a broader populist distrust of Silicon Valley, exposing lawmakers who, until recently, were courting the sprawling server farms with tax breaks and promises of jobs and investment.

In Texas, Republican Governor Greg Abbott has frozen new projects while regulators weigh their impact on power and water supplies. It was Abbott who, not long ago, called his state the "epicenter of AI development."

His Democratic challenger wants a moratorium until lawmakers pass stronger safeguards, and accuses Abbott of putting wealthy interests ahead of ordinary Texans.

In Brazoria -- between Houston and the Gulf Coast -- 44-year-old Melissa Burnett told AFP the serenity of her quiet neighborhood had been shattered by a 17-megawatt center last year that is "like a freight train always coming at you."

"We were not supposed to hear it, nor was it supposed to affect our quality of life, and it's just done the opposite, you know?" she said.

Almost alone among Republicans, President Donald Trump has not moved. He still calls the industry essential to beating China on AI, leaving him at odds with candidates running under his own banner.

- 'Sleeper issue' -

The midwestern former manufacturing hub of Ohio offers perhaps the sharpest test of the politics of data centers.

Sherrod Brown, a Democrat who lost his Senate berth in 2024, is running for the Buckeye State's other seat. Brown has run at least four ads attacking Republican Jon Husted for courting data center investment as lieutenant governor.

They brand Husted "the face of data centers," and Brown has promised to make operators pay the full cost of the power they use.

Senate Republicans have warned that the issue could cost Husted the race. Their campaign arm called data centers a "sleeper issue" and said a defeat blamed on them would chill political support for the industry nationwide.

The same argument is turning up in races that have little else in common: a Republican running for governor in Florida promising to shield families from facilities that push up utility bills; a Pennsylvania Democrat demanding that tech companies cover their own costs; a Wyoming Republican who won a House primary on advertisements attacking Silicon Valley billionaires.

In Michigan, the issue toppled two better-connected Democrats in a primary won by a leftist who said opposition had united committed Republicans, Trump voters, independents and Democrats.

- Both parties turn -

In Wisconsin, Republican gubernatorial nominee Tom Tiffany has taken to calling his Democratic opponent "Data Center David Crowley." Earlier this year Tiffany was praising the technology and voting to speed AI infrastructure through.

Tiffany now wants the state's tax incentives scrapped and the industry more tightly regulated, though he stops short of a ban.

Democratic governors are moving the same way.

New York has imposed a year-long moratorium on new hyperscale facilities, and Pennsylvania now requires developers to cover infrastructure costs and meet tougher standards on water use, hiring and community consultation.

Trump has not moved with them.

"America must remain dominant in the AI race that is the future. I think the American people understand that, and this president certainly does," his spokeswoman Karoline Leavitt said on Thursday.

His administration has signed up Google, Microsoft, Meta, Oracle, xAI, OpenAI and Amazon to a voluntary "Ratepayer Protection Pledge."

Under it, the companies undertake not to leave consumers paying for the power plants and grid upgrades their facilities require.

The pledge has not stopped the advertisements.