James Durso

Pakistan and Iran are deepening cooperation on border security, counterterrorism, mediation, and economic connectivity despite Tehran’s increasingly IRGC-influenced political system. The two countries aim to raise bilateral trade from roughly $3 billion to $10 billion through transport upgrades, customs improvements, and border economic zones. Pakistan’s mediation in the U.S.-Iran conflict has increased its diplomatic standing, while Iran values a stable eastern flank and a trusted interlocutor. The main obstacles are regional escalation, sanctions, fragmented decision-making in Tehran, tensions involving Saudi Arabia and the United States, and possible Chinese arms transfers through Pakistan. The outlook is cautiously positive, with security cooperation likely to advance incrementally while formal economic integration remains constrained.

Iraqi Prime Minister Ali Al-Zaidi’s Washington visit produced more than $60 billion in proposed U.S. and Western investment agreements, including energy, infrastructure, healthcare, communications, and the planned opening of a JPMorgan Chase branch. The visit advanced oil-field redevelopment and export routes through Syria and Türkiye that could reduce Iraq’s dependence on the Strait of Hormuz. It also recast the U.S.-Iraq relationship around economic cooperation rather than primarily military ties and strengthened Al-Zaidi’s position domestically. However, most of the 48 agreements are nonbinding memoranda, implementation faces corruption and security obstacles, and Washington continues to demand limits on Iran-backed militias. Iraq is therefore attempting a policy of positive neutrality—deepening relations with the United States without abandoning pragmatic ties with Iran—while seeking reconstruction and investment amid regional conflict.