Three Precious Gifts to Tehran from Saddam Hussein, Osama bin Laden, and George W. Bush

(FILES) Photo taken 01 February 1979 at Tehran airport of Ruhollah Khomeini (C) leaving the Air France Boeing 747 jumbo that flew him back from exile in France to Tehran. Getty Images
(FILES) Photo taken 01 February 1979 at Tehran airport of Ruhollah Khomeini (C) leaving the Air France Boeing 747 jumbo that flew him back from exile in France to Tehran. Getty Images
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Three Precious Gifts to Tehran from Saddam Hussein, Osama bin Laden, and George W. Bush

(FILES) Photo taken 01 February 1979 at Tehran airport of Ruhollah Khomeini (C) leaving the Air France Boeing 747 jumbo that flew him back from exile in France to Tehran. Getty Images
(FILES) Photo taken 01 February 1979 at Tehran airport of Ruhollah Khomeini (C) leaving the Air France Boeing 747 jumbo that flew him back from exile in France to Tehran. Getty Images

Most people in today’s Middle East were born after 1979. Yet they often overlook how profoundly that year shaped their countries, their stability, and their daily lives. It unleashed storms, wars, and leaders whose ambitions and dangers far exceeded the borders from which they emerged. Some observers even see a direct link between that pivotal year and what is unfolding today around the Strait of Hormuz following the recent US-Israeli war against Iran and its military arsenal.

Few years in modern history can rival 1979 in significance or consequence.

That year, Khomeini returned to Tehran from exile in Paris. The reactor of the Iranian Revolution quickly began emitting its political radiation, especially after the institutionalization of the doctrine of Wilayat al-Faqih, the Guardianship of the Islamic Jurist.

The same year, Iraq’s presidential palace effectively fell into the hands of the country’s strongman, Saddam Hussein, who eased President Ahmed Hassan al-Bakr into retirement under the burdens of age—and perhaps regret.

In 1979, Egyptian President Anwar Sadat also signed the Camp David Accords with Israeli Prime Minister Menachem Begin in Washington under the sponsorship of President Jimmy Carter.

These developments soon intersected with a major international event. Soviet leader Leonid Brezhnev committed what many would later regard as the grave error of invading Afghanistan. The Kremlin walked into a trap. From among the fighters who flocked to that battlefield would emerge Osama bin Laden, the man who would inaugurate the new century with the attacks on New York and Washington, unintentionally paving the way for the removal of Saddam Hussein’s regime.

On January 16, 1979, amid mounting protests and demonstrations, Shah Mohammad Reza Pahlavi left Iran, entrusting the country to the government of Shapour Bakhtiar. Those around him tried to portray the departure as a temporary vacation. In reality, it was a one-way journey. America had abandoned its ally.

The decisive turning point came swiftly. On February 1, a plane from Paris landed at Tehran’s Mehrabad Airport carrying an extraordinary passenger: Ayatollah Khomeini, returning after fourteen years in exile. The massive crowds that greeted him delivered an unmistakable message. The Shah’s regime had fallen. The revolution had triumphed.

Ruhollah Khomeini (L) prays with the Iranian opposition leaders after receiving them at his Pontchartrain mansion, west of Paris, on November 6, 1978. (Photo by Joel ROBINE / AFP via Getty Images)

Decision-makers across the region watched carefully. Few were more alarmed than Saddam Hussein, then the powerful deputy leader of Baathist Iraq. Events in Tehran accelerated rapidly. The Islamic Republic was proclaimed. The doctrine of Wilayat al-Faqih was enshrined. The constitution incorporated language committing the new state to “exporting the revolution” under the banner of supporting the oppressed.

Saddam Refuses to Kill Khomeini

History could easily have unfolded differently.

During Khomeini’s years in Najaf, he was a difficult guest. Iraqi authorities frequently complained that he sought to evade the restrictions attached to his residency. After the Algiers Agreement of March 6, 1975, signed by the Shah and Saddam Hussein under the auspices of Algerian President Houari Boumédiène, both sides pledged to cease supporting each other’s opponents.

Iraqi officials repeatedly reminded Khomeini of the understanding. He effectively refused to commit himself to ending political activity against the Shah.

According to former Iraqi officials, Iraqi intelligence one day proposed arranging Khomeini’s assassination and blaming the Shah’s security services. Saddam’s response surprised them. He reportedly asked: “Do the people making this proposal not understand that Iraq does not betray its guests?”

Thus Khomeini remained alive.

Once the Iran-Iraq War began, however, eliminating him became an obsession for Saddam’s half-brother Barzan al-Tikriti, the head of Iraqi intelligence. Reaching Khomeini was difficult, though Iran in 1981 had not yet fully consolidated its security institutions.

Iraqi intelligence developed ties with the Kurdistan Democratic Party of Iran and with the Mujahedin-e Khalq. It helped coordinate operations that culminated in the devastating bombing of Iran’s parliament complex, killing dozens of senior figures. Soon afterward, Ali Khamenei was targeted by a bomb hidden inside a tape recorder, leaving him permanently injured in one arm.

Barzan remained determined to reach Khomeini himself. According to accounts from former Iraqi intelligence officials, Baghdad eventually recruited a cleric close to the Iranian leader and managed to plant a small explosive device inside Khomeini’s wool pillow. The bomb detonated when he was away from it. The attempt failed.

The Paris Interlude

Chance played an important role in Khomeini’s journey to power.

Forced to leave Iraq, he searched for a new place of exile. Years later in Paris, former Syrian Vice President Abdul Halim Khaddam recalled that Khomeini’s associates discreetly explored the possibility of relocating to Syria. President Hafez al-Assad was not interested.

Khaddam said Assad feared that hosting Khomeini could trigger not merely a political crisis with Iraq but perhaps even war between the two Baathist rivals. Khaddam advised Khomeini’s entourage to consider Algeria instead. They dismissed the idea, believing Algeria was too distant and likely to impose strict restrictions.

What surprised Khaddam was France’s willingness to receive Khomeini and provide him with a global platform.

During his stay in Neauphle-le-Château outside Paris, visitors streamed in from around the world.

Iraqi authorities sought to gauge his intentions. Khomeini had already demonstrated his ability to move Iranian public opinion through audio recordings that supporters distributed secretly inside Iran.

The Iraqi intelligence officer responsible for liaising with Khomeini during his years in Najaf was Ali Baweh, who had often facilitated his activities. Baghdad decided to send him to Paris. Former intelligence officials claim Baweh traveled with another man wearing a watch capable of recording conversations. Khomeini received them politely but showed no flexibility.

Asked about his plans after the Shah’s fall, he delivered an answer that landed like a bomb. After overthrowing the Shah, he said, the next objective would be “the overthrow of the infidel Baath regime.”

Saddam’s Obsession with Wilayat al-Faqih

When Khomeini appeared in Tehran surrounded by unprecedented crowds, Saddam understood that the storm would soon reach Iraq.

According to former presidential aides, the issue that troubled him most was not the revolution itself but the doctrine of Wilayat al-Faqih. Saddam believed it implied that a non-Iraqi cleric could demand the allegiance of Iraqi Shiites. To him, this represented a direct threat to Iraq’s sovereignty and cohesion.

He reportedly kept a booklet explaining the powers of the Supreme Jurist as understood by Khomeini and studied it carefully. By September 1980, Saddam had concluded that war was inevitable. He believed Khomeini intended to penetrate the Arab world by first bringing down Iraq. Waiting, in his view, meant eventually fighting Iran in the streets of Baghdad. Better to fight on the border.

Iraqi leader Saddam Hussein visits soldiers in northern Iraq. (Photo by Jacques Pavlovsky/Sygma via Getty Images)

Many who knew him believe this conviction also strengthened his determination to remove Ahmed Hassan al-Bakr and assume full power. Since the Baath Party’s return to government in 1968, Saddam had chosen to remain formally second in command, benefiting from Bakr’s legitimacy while gradually reshaping the military and state institutions around himself.
On July 16, 1979, Bakr finally departed. The age of Saddam had begun.

Former Foreign Minister Hamed al-Jubouri later recounted a revealing conversation with Bakr. When Jubouri once attempted to resign, Bakr reportedly pointed to the presidential chair and declared: “I would urinate on the presidency if it cannot even preserve the dignity of the president.”

Then, with tears in his eyes, he added: “Forget resignation. I cannot accept yours. Who can accept mine? We are prisoners. We do not possess the right to resign.”

“We Will Smash the Iranians’ Heads”

Saddam’s decision to go to war preceded his formal assumption of the presidency.
Salah Omar al-Ali, one of the veteran Baathist leaders who helped bring the party to power in 1968, recalled a revealing conversation during the Non-Aligned Movement summit in Havana in September 1979.

Iraqi President Ahmed Hassan al-Bakr and Saddam met Iranian Foreign Minister Ebrahim Yazdi. Despite tensions along the border, the atmosphere was constructive.
Hoping to reinforce that mood, Salah Omar al-Ali later spoke privately with Saddam and stressed the importance of peaceful solutions and economic development.

IRAQ - JANUARY 01: Iranian POW's waiting in line for food at the Ramadt detention camp under a smiling portrait of Iraq leader Saddam Hussein during the war between Iran Iraq. (Photo by Bill Foley/Getty Images)

Saddam listened attentively before responding.

“Pay attention, Salah,” he said. “This opportunity may come only once every hundred years. The opportunity exists today. We will smash the Iranians’ heads. We will recover every inch they occupied. We will restore the Shatt al-Arab.”

Then he added sharply: “I never want to hear you speak again about peaceful solutions, humanitarian solutions, or settling problems with Iran. Listen carefully. I will smash the Iranians’ heads and recover every inch from Khorramshahr to the Shatt al-Arab.”

A year later, he launched the war.

Saddam believed several factors worked in his favor. Khomeini’s revolution had turned America into Iran’s enemy. The Soviet Union feared revolutionary contagion among its Muslim republics. The Gulf monarchies felt threatened by Tehran’s ambitions.

He convinced himself that Iraq alone could break the revolutionary wave threatening regional stability. He miscalculated.

He assumed Iran’s post-revolutionary chaos would guarantee a quick victory. He failed to understand how rapidly Iranian nationalism would fuse with religious fervor once Iraqi troops crossed the border.

The war did not destroy the Islamic Republic. Instead, it strengthened it. Khomeini ruthlessly consolidated power and entrenched the rule of the Supreme Jurist. Saddam’s greatest achievement after eight years of war was a ceasefire. Iran survived. Iraq was exhausted.

The Kuwait Gift

In the years that followed, Tehran received another unexpected gift.

General Nizar al-Khazraji, Iraq’s chief of staff at the time, later described how he learned of the invasion of Kuwait in August 1990.

“I was asleep at home,” he recalled. “Early in the morning I received a call summoning me to General Headquarters. When I arrived, I was told: ‘We have completed the occupation of Kuwait.’”

Khazraji was stunned. Defense Minister Abdul Jabbar Shanshal was informed in exactly the same way.

Imagine, Khazraji said, an army being pushed into such an adventure without the knowledge of either its defense minister or its chief of staff.

A few days later Saddam explained that secrecy had been necessary to preserve surprise. He added that Kuwait had been liberated by forces reporting directly to him rather than to the regular chain of command.

Khazraji saw the decision as the product of arrogance born from Saddam’s belief that he had emerged victorious from the war with Iran.

The consequences were enormous.

The world’s attention shifted decisively from the “Iranian threat” to the “Iraqi threat.” Operation Desert Storm expelled Saddam from Kuwait and left Iraq wounded, isolated, and under sanctions.

Meanwhile, Iran caught its breath and resumed its long-term regional project.

The Gifts of Osama bin Laden and George W. Bush

Another chain of events that began in 1979 would transform the Middle East.

The Soviet invasion of Afghanistan triggered alarm throughout the West. Washington resolved to make Moscow pay dearly. Volunteers poured into Afghanistan from across the Arab and Muslim worlds. The United States encouraged the jihad against Soviet forces and supported many of the fighters.

Among them was a wealthy young Saudi named Osama bin Laden.

On Afghan soil, al-Qaeda was born.

ARLINGTON, VA - SEPTEMBER 12: President George W. Bush and Secretary of Defense Donald Rumsfeld survey the damage at the Pentagon building September 12, 2001 in Arlington, VA. (Photo by David Hume Kennerly/Getty Images)

On September 11, 2001, bin Laden carried the conflict to the American mainland. Civilian airliners destroyed the towers of the World Trade Center. Thousands were killed.
America had been struck at the heart of its power and prestige. The world waited for the response.

Under President George W. Bush, encouraged by military and security institutions and by the neoconservative movement, the United States first overthrew the Taliban and then invaded Iraq, toppling Saddam Hussein.

For the generals of Iran’s Revolutionary Guard, the scene was almost unbelievable.

The Taliban regime, hostile to Tehran, had fallen at American hands. Saddam’s regime, which Iran had failed to overthrow during eight years of war, met the same fate.

Iran neither obstructed these outcomes nor mourned them. Yet Tehran also saw American forces deployed on both its eastern and western frontiers.

A new phase in US-Iran relations began.

Qassem Soleimani and officers of the Quds Force focused on undermining the American military presence, especially in Iraq, while avoiding direct confrontation with Washington.

Without intending to, bin Laden had delivered Iran another extraordinary gift.

After the attacks on New York and Washington, the world became obsessed with al-Qaeda. Soon afterward, attention shifted toward Saddam Hussein, whose danger was magnified relentlessly by Western political and media narratives.

The result was that Iran moved out of the center of the international spotlight.

The Bush administration advanced numerous arguments to justify war against Iraq: alleged weapons of mass destruction, obstruction of international inspectors, and suspicions that Saddam had never abandoned nuclear ambitions.

Most consequential was the effort to suggest a connection between Saddam Hussein and al-Qaeda.

No meaningful partnership ever emerged between the Iraqi regime and bin Laden’s organization. Yet Saddam did make the mistake of exploring the possibility.

While bin Laden was living in Khartoum, Iraqi intelligence officer Farouq Hijazi met him through the mediation of Sudanese Islamist leader Hassan al-Turabi. The discussion was lengthy and difficult. After returning to Baghdad, Hijazi advised Saddam to close the file. Contacts ended.

But the allegation lingered—and helped justify the invasion.

Syria, Soleimani, and the Iraqi Prize

Another event left a lasting mark on the region’s future. Days before the American invasion of Iraq, Syrian President Bashar al-Assad flew to Tehran. Anxiety about the coming war dominated his discussions with President Mohammad Khatami and Supreme Leader Ali Khamenei.

Bashar Assad meets with Qassem Soleimani

Both sides agreed that if American forces consolidated their position in Iraq, Syria or Iran could be next.

The answer, they concluded, was to bleed the American presence through resistance movements. Qassem Soleimani participated in some of those discussions.
Syria subsequently facilitated the movement of fighters into Iraq, while Soleimani methodically built resistance networks.

Iran wagered on geography—and won.

It encouraged its Iraqi allies to participate in governing institutions and successive governments, especially after executive power became concentrated in the office of the prime minister, a position conventionally held by a Shiite politician.

When the last American soldier left Iraq in December 2011, Iran had become an indispensable actor in Iraqi affairs.

The fingerprints of Soleimani were visible throughout the Iraqi state. After his death, many of those networks remained under the stewardship of his successor, Esmail Qaani.

Then came another opportunity. In July 2014, Abu Bakr al-Baghdadi appeared in Mosul after the dramatic collapse of Iraqi army units. Soleimani moved immediately, dispatching weapons to both Baghdad and Erbil.

Grand Ayatollah Ali al-Sistani issued his famous call to arms. Iran later helped transform the resulting mobilization into the Popular Mobilization Forces, which eventually became an official institution under the authority of the Iraqi prime minister.

Iranian influence now extended across parliament, government, the military, and the PMF. From Iraq to Lebanon, from the Palestinian arena to Yemen, Tehran steadily expanded its reach.

The cumulative result is difficult to miss. Khomeini survived. Saddam’s war failed. Saddam’s invasion of Kuwait redirected international attention. Bin Laden’s attacks transformed global priorities. George W. Bush’s invasion removed Iran’s most formidable Arab rival. Each actor pursued his own objectives. Together, however, Saddam Hussein, Osama bin Laden, and George W. Bush delivered three of the most valuable strategic gifts the Islamic Republic of Iran has ever received.



Sudan’s Muslim Brotherhood at a Crossroads

Ali Ahmed Karti, Secretary General of the Sudanese Islamic Movement. (Facebook)
Ali Ahmed Karti, Secretary General of the Sudanese Islamic Movement. (Facebook)
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Sudan’s Muslim Brotherhood at a Crossroads

Ali Ahmed Karti, Secretary General of the Sudanese Islamic Movement. (Facebook)
Ali Ahmed Karti, Secretary General of the Sudanese Islamic Movement. (Facebook)

Sudan is passing through an exceptionally complex phase as the war enters its fourth year and military and political alliances continue to shift at a rapid pace. With factions that have defected from the Rapid Support Forces (RSF) joining the Sudanese Armed Forces, alongside the Joint Forces of Darfur’s armed movements, the Sudan Shield Forces, and formations linked to the Islamist movement, a new balance of power is gradually emerging within the anti-RSF camp.

This evolving landscape reflects a temporary convergence of interests among actors that differ sharply in their backgrounds, objectives, and visions for Sudan’s future. While confronting the RSF remains the primary factor uniting these forces, underlying political and military differences raise serious questions about the durability of their alliance.

Sudan’s history suggests that wartime coalitions do not necessarily evolve into stable partnerships in peacetime. Instead, they often become arenas for new struggles over influence, power, and postwar arrangements. Understanding the emerging balance of forces is therefore crucial to assessing whether cooperation or confrontation will define the next phase.

In recent months, the Sudanese army has become the principal military umbrella under which a range of disparate groups operate.

The Joint Forces drawn from Darfur’s armed movements bring battlefield experience and significant combat capability. The Sudan Shield Forces have emerged as a growing tribal and military force, while former RSF members are seeking to secure a place within the new order.

Necessary alliance

This configuration has created what amounts to an “alliance of necessity.” Its members are united by a common objective — defeating the RSF — but not by a shared political project. Each faction has its own calculations regarding future power-sharing arrangements and influence.

Within this context, a central question concerns the place of Sudan’s Islamist movement in the postwar landscape.

For decades, Islamists constituted one of the most influential forces within the Sudanese state through their political, organizational, and security networks. Today, however, they no longer monopolize the instruments of power.

Many of the groups that have risen during the conflict do not subscribe to the Islamist project. Some also carry a long history of political rivalry with Islamists dating back to the era of the National Salvation regime led by ousted former President Omar al-Bashir.

This has produced a striking paradox: the broader the coalition supporting the army becomes, the smaller the Islamists’ relative weight within it. They are no longer the sole source of political backing, military support, or social mobilization. Instead, they have become one actor among several competing centers of influence, each pursuing its own interests.

Sudanese army soldiers parade in the streets of eastern Sudan's city of Gedaref on August 14, 2025 to mark the 71st anniversary of the formation of the Sudanese army. (AFP)

Mounting pressure

Signs are growing that the Islamist movement is facing increasing political pressure, both domestically and internationally.

Retired Maj. Gen. Abdel-Hadi Abdel-Basit, a strategic analyst close to Islamist circles, said the movement is confronting unprecedented challenges.

Calls have intensified for Islamists to be excluded from post-war arrangements and even held accountable for their role during decades of rule and the allegations associated with that period.

In recent months, several prominent Islamist figures were detained and later released, while National Congress Party leader Al-Numan Abdel Halim remains in custody.

These developments coincided with what many Islamists believe were externally driven pressures, including the US State Department’s designation of Sudan’s Islamist movement, the National Congress Party, and the Al-Baraa ibn Malik Battalion as terrorist organizations.

Regional and international actors have likewise called for Islamists to be excluded from any future political process.

Such positions have surfaced in consultations involving both the Quad mechanism — comprising Saudi Arabia, Egypt, the United Arab Emirates, and United States — and the Quintet mechanism, which includes the United Nations, the European Union, the African Union, the Arab League, and Intergovernmental Authority on Development (IGAD).

Civilian political forces, however, view the decline of Islamist influence primarily as a consequence of Sudan’s democratic transition rather than the war itself.

Bakri Eljack, spokesman for the democratic civilian coalition Somoud (Resilience), argued that army commander Abdel Fattah al-Burhan may be able to distance himself from the Islamists, but their influence within state institutions remains significant.

Any effort to remove them would require a broad political alliance capable of managing the next phase, he explained.

Sharif Mohamed Osman, of the Sudanese Congress Party, said the Islamist project and National Congress Party rule were rejected by the people will during the December 2018 revolution.

He noted that efforts associated with prolonging the conflict have further weakened the movement, while international pressure and sanctions have deepened its political isolation.

Yet, predictions of the Islamists’ complete demise may be premature. The movement still possesses extensive organizational networks, decades of political experience, and influence within parts of the state and society.

Even so, current trends suggest that regaining the dominant position it enjoyed during the Bashir era may be more difficult than ever before.


Can Iran Maintain its Influence in Iraq?

Iraqi Prime Minister Ali al-Zaidi meets Iranian Ambassador Mohammad Kazem Al Sadeq in Baghdad. (Government media)
Iraqi Prime Minister Ali al-Zaidi meets Iranian Ambassador Mohammad Kazem Al Sadeq in Baghdad. (Government media)
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Can Iran Maintain its Influence in Iraq?

Iraqi Prime Minister Ali al-Zaidi meets Iranian Ambassador Mohammad Kazem Al Sadeq in Baghdad. (Government media)
Iraqi Prime Minister Ali al-Zaidi meets Iranian Ambassador Mohammad Kazem Al Sadeq in Baghdad. (Government media)

Iraqi politicians are closely watching what they describe as the potential “side effects” of any future US-Iran agreement and how it could reshape the balance of power inside Iraq.

Some observers argue that a deal would likely strengthen Washington’s influence while diminishing Tehran’s leverage. Others contend that Iran could emerge from the process with a renewed and possibly more durable form of dominance in Iraq over the coming months and years.

With significant ambiguity still surrounding the US-Iran memorandum of understanding - particularly regarding Tehran’s regional proxies and allied armed groups - signals from both capitals have done little to clarify Iraq’s future position within the competing spheres of influence of the two longtime adversaries.

The US Position

Despite repeated American warnings to Baghdad against bringing factions designated on the US terrorism list into government, Washington’s broader position remains unclear.

Asked by Alhurra, the US-funded Arabic-language broadcaster, whether a US-Iran agreement would affect Iraq and whether it might weaken or strengthen armed factions, Joshua Harris, the chargé d’affaires at the US Embassy in Baghdad, declined to speculate on the outcome.
Instead, he said the priority should be an Iraqi government that places the interests of its citizens first, noting that the United States approaches foreign policy by prioritizing its own national interests.

Harris added that the foundation of a mutually beneficial partnership between Washington and Baghdad depends on the Iraqi state confronting the challenge posed by militias and ensuring that weapons remain exclusively under state control. He described this as the essential benchmark that Iraq must meet in order to deepen its partnership with the United States.

A handout photo made available by the Iraqi Prime Minister's Media Office on 17 June 2026 shows Iraqi Prime Minister Ali al-Zaidi (L) meeting with US Special Presidential Envoy for Syria and Iraq Tom Barrack (R) in Baghdad, Iraq, 15 June 2026. EPA/IRAQI PRIME MINISTER'S MEDIA OFFICE

Iran Regains Momentum

At the same time, the Iranian role appears to be returning to the level seen before the war that erupted at the end of February.

Media outlets close to Tehran report that Iranian Foreign Minister Abbas Araghchi plans to visit Baghdad soon to discuss the talks held in Switzerland and preparations for the funeral procession of Iran’s former Supreme Leader Ali Khamenei.

Earlier, Tehran Mayor Alireza Zakani announced that Khamenei’s body would be transferred in early July as part of the funeral arrangements preceding burial ceremonies.

Even amid uncertainty surrounding those plans, some observers argue that the announcement itself underscores the extent of Iran’s influence in Iraq.

The Militias Question

Although Iran-aligned factions created security challenges through their involvement in the war on Tehran’s side, Iran’s ambassador to Iraq, Mohammad Kazem Al Sadeq, recently insisted that Iran “has not asked any party to intervene because it did not need such intervention.”

The remark suggested that Iraqi armed factions volunteered to support Iran rather than acting at Tehran’s request.

On the issue of restricting weapons to state control - a matter on which Washington has adopted a notably firm position - the Iranian ambassador said it was an internal Iraqi matter and that Tehran would respect any decision taken by the Iraqi government.

At the same time, he stressed the need to understand why armed factions wish to retain their weapons and to address what he described as their concerns and fears.

The source argued that Iran has demonstrated over the past two decades that it knows precisely what it wants from Iraq, unlike what he characterized as inconsistent American policy. He predicted that this situation would continue even after any US-Iran agreement is signed.

According to the source, who requested anonymity, Iran is likely to adopt a less visible approach after an agreement, one that avoids provoking Washington while preserving its traditional influence through allied political parties and figures.

Mourners attend the funeral of members of the Iraqi armed group Kataib Hezbollah who were killed in an airstrike that targeted a PMF headquarters near the western al‑Qaim district on the Syrian border, amid the US-Israel conflict with Iran, in Baghdad, Iraq, March 2, 2026. REUTERS/Thaier Al-Suda

The Oil Card

Opponents of Iranian influence take a different view. They believe the administration of President Donald Trump is both willing and able to curb Tehran’s reach through mounting pressure on Iran and sustained influence over decision-making in Baghdad.

These groups argue that the threat of economic sanctions alone could prompt Iraqi leaders - particularly Shiite political parties - to reconsider the risks associated with continued Iranian influence.

A key factor is Iraq’s dependence on the US-controlled financial system. Revenues from Iraqi oil sales are deposited with the US Federal Reserve before being transferred back to Iraqi banks, giving Washington a powerful source of leverage over Baghdad.


Undoing the ‘Tangled Nest’ of Iran Sanctions Won’t Be Easy or Quick

A veiled Iranian woman walks past an anti-US mural, depicting an Iranian and US negotiation table, next to the former US embassy in Tehran, Iran, 22 June 2026. (EPA)
A veiled Iranian woman walks past an anti-US mural, depicting an Iranian and US negotiation table, next to the former US embassy in Tehran, Iran, 22 June 2026. (EPA)
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Undoing the ‘Tangled Nest’ of Iran Sanctions Won’t Be Easy or Quick

A veiled Iranian woman walks past an anti-US mural, depicting an Iranian and US negotiation table, next to the former US embassy in Tehran, Iran, 22 June 2026. (EPA)
A veiled Iranian woman walks past an anti-US mural, depicting an Iranian and US negotiation table, next to the former US embassy in Tehran, Iran, 22 June 2026. (EPA)

Tehran stands to gain billions of dollars from a 60-day reprieve from US sanctions announced on Monday, but unwinding more than four decades of restrictions poses legal, political and commercial challenges that could take years.

At issue is whether an interim US deal with Iran can translate into lasting economic relief, given the complexity of dismantling a sanctions regime that spans US law, international measures and private-sector risk concerns.

The United Nations, the US and the European Union have imposed sanctions and trade embargoes and have frozen assets since the late 1970s over Iran's nuclear program, human rights violations and support for armed groups around the region.

Under a 14-point memorandum of understanding signed by the US and Iran last week, Washington is to start abolishing all types of sanctions using a schedule to be forged in a final deal within 60 days, a period that can be extended.

On Monday, the US Treasury issued a temporary general license allowing the production, delivery and sale of crude oil and petrochemical and petroleum products of Iranian origin through August 21.

Removing the remaining sanctions - if it happens - would represent a stark change in US policy toward the Middle East, which has long focused on curbing ‌Iran's influence and ‌using financial pressure to weaken its theocratic government.

It would also be difficult, requiring executive action for some measures, approval ‌by ⁠Congress for others ⁠and close coordination with the UN and other countries that have imposed their own sanctions. Companies, wary after decades of restrictions, could also blunt the impact.

"You have this tangled nest of sanctions, and it's not just executive orders, it's congressional sanctions," said Juan Zarate, deputy national security adviser for combating terrorism under former President George W. Bush.

CONGRESS IS SKEPTICAL

Washington first sanctioned Iran in 1979, after revolutionary students seized the US embassy in Tehran, holding diplomats hostage.

Since then, Congress has passed half a dozen sanctions laws and presidents have issued executive orders over Iran's nuclear program and its support for groups the US deems terrorist organizations including Hamas, Hezbollah and Yemen's Houthis.

Since early 2025, the Treasury's Office of Foreign Assets Control (OFAC) has imposed sanctions on more than 1,000 people, vessels and aircraft, according to Treasury data.

Delisting thousands of entities designated for ⁠sanctions would take OFAC at least a year, said Jeremy Paner, a partner at law firm Hughes Hubbard & Reed ‌and a former US sanctions official.

President Donald Trump can rescind executive orders issued on Iran, but some ‌measures - including sanctions on Hamas and Hezbollah - are mandated by law and will have to be removed or amended by Congress, where the interim deal has already sparked sharp ‌public criticism from his fellow Republican lawmakers.

Undoing 40 years of sanctions would be difficult, added Matt Zweig, managing director of policy at FDD ‌Action, the lobbying arm of the Foundation for Defense of Democracies.

"Any attempt to comprehensively remove layer upon layer of sanctions will be like peeling back an onion - exposing the administration - not just to legal complexities but political risks," said Zweig, a former aide on the House Foreign Affairs Committee.

The license issued on Monday could be worth up to $3 billion for Iran over two months, by some estimates.

That could swell to "at least tens of billions of dollars" if made permanent, erasing a discount on Iranian oil, allowing Tehran to ‌sell to additional buyers beyond China, and increasing exports, said Edward Fishman, senior fellow at the Council on Foreign Relations. China now buys about 90% of Iranian oil, despite the sanctions.

The new license is broader than ⁠the one issued in March, calling for ⁠inclusion of not just oil and petroleum products, but also banking, insurance and transportation related to the oil trade, giving Tehran quicker access to its revenues.

"There are a number of thorny issues involved," said Stephanie Connor, a former OFAC official now a partner with law firm Holland & Knight, adding that lifting sanctions could mean funds flowing to groups the US considers a threat.

"Are we really going to let money start flowing to Iran's Revolutionary Guard Corps?" she asked, referring to the powerful paramilitary force that the US has designated a foreign terrorist organization.

WARY COMPANIES

Banks, oil firms and insurers will face evolving regulations, tougher due diligence and exposure to sanctions-evasion risks tied to Iran links with countries such as China, North Korea and Russia. They also remain subject to separate sanctions from Britain, the UN, the EU and others.

"We've kind of beaten the markets up with the risk of doing business with or through Iran, so you can't just flip a switch and say, 'Oh, now it's okay to do business with Iran,'" Zarate said.

Companies that deal with Iran would still face lawsuits from victims of attacks, who can sue investors and companies for aiding designated groups under the 2016 Justice Against Sponsors of Terrorism Act, which aides say is unlikely to be repealed.

Given such risks, companies may steer clear of working with Iran to escape legal and reputational risk as long as the Iranian government remains in power, said Brett Erickson, principal with Obsidian Risk Advisors.

"We're not going to see massive multi-billion-dollar commitments until things are far more cemented and politically stable," he said. "There's just a long way to go."