Assessments

Iraq Faces America's Economic Wrath

Matthew Bey
Senior Global Analyst, Stratfor
Jan 14, 2020 | 10:00 GMT
The U.S. Embassy in Baghdad is seen on Jan. 2, 2020, following an attack on the facility.

The U.S. Embassy in Baghdad is seen on Jan. 2, 2020, following an attack on the facility. If Iraq pushes U.S. troops to leave, the country will find itself in America's economic crosshairs.

(AHMAD AL-RUBAYE/AFP via Getty Images)

For companies active in Iraq, threats to physical security -- whether from a possible military conflict between the United States and Iran, militia violence or a resurgent Islamic State -- aren't the only thing they need to worry about. That's because dark economic times could also be on the way, especially as U.S. President Donald Trump has threatened to enact sanctions on Iraq if Baghdad continues to push for a withdrawal of U.S. forces from Iraq following the U.S. assassination of Qassem Soleimani. If Baghdad pushes U.S. forces out, the aftermath, bluntly speaking, will be messy. Given that bilateral diplomatic relations would inevitably take a nosedive in such a situation, the United States would most likely impose punishing sanctions on Iraq. And even if such measures don't come to pass, the United States' campaign of maximum pressure on Iran will certainly leave Iraq worse for wear as well....

Article Search

Copyright © Stratfor Enterprises, LLC. All rights reserved.

Stratfor Worldview

OUR COMMITMENT

To empower members to confidently understand and navigate a continuously changing and complex global environment.