Iran and Iraq
Iraq and Iran held consultations during the regional military escalation in June 2025. In Istanbul, the Iraqi foreign minister called for an end to attacks on Iran and a return to negotiations, while both ministers addressed bilateral relations and the need to respect national sovereignty.
Analysis reviewed: 2026-10-08 · Indicators updated: 2026-10-08Bilateral context
Fuad Hussein and Abbas Araghchi met on 21 June 2025 on the sidelines of the OIC Council of Foreign Ministers in Istanbul.
What merchandise trade shows
In 2024, goods trade between Iran and Iraq totalled 3,140.2 million current USD.
Documented trade sectors
Within the selected chapters, dairy products, eggs and honey stands out in shipments from Iran to Iraq, at 182.1 million USD in 2024.
Bilateral indicators
Blank cells: data unavailable.
| Indicator | Value | Period |
|---|---|---|
| Goods trade | 3,140.18 M USD | 2024 · Comtrade |
| Goods: Iran to Iraq | 3,139.23 M USD | 2024 · Comtrade |
| Goods: Iraq to Iran | 0.948 M USD | 2024 · Comtrade |
| Services trade | ||
| Export share: Iran to Iraq | ||
| Export share: Iraq to Iran | 0.000902 % | 2024 · Comtrade |
| Investment stock: Iran in Iraq | ||
| Investment stock: Iraq in Iran |
Definitions and sources
Trade adds both directions. Shares refer to the country’s total goods exports; investment is an accumulated stock, not an annual flow. Every figure retains the currency and period of its source. BEA positions are historical-cost estimates based on the immediate counterpart, not market values or investment by ultimate owner. ‘More than’ indicates a lower bound, not an exact amount. A recorded stock does not establish new activity or authorisation to operate under sanctions.
- Goods trade
- 2024 · UN Comtrade · Goods; full calendar year; reporter IRQ. Both directions come from the same verified customs document, not from adding mirror declarations together. Exports generally FOB; imports generally CIF.
- Goods: Iran to Iraq
- 2024 · UN Comtrade · Goods; full calendar year; reporter IRQ. Both directions come from the same verified customs document, not from adding mirror declarations together. Exports generally FOB; imports generally CIF.
- Goods: Iraq to Iran
- 2024 · UN Comtrade · Goods; full calendar year; reporter IRQ. Both directions come from the same verified customs document, not from adding mirror declarations together. Exports generally FOB; imports generally CIF.
- Export share: Iraq to Iran
- 2024 · UN Comtrade · Exports to the partner / worldwide exports by the same reporter; same year and coverage.
Country comparison
Period and source beside each figure · est. = estimate by the stated institution.
Some annual indicators refer to different years. Check the period beside each value before comparing them.
| Indicator | Iran | Iraq |
|---|---|---|
| Nominal GDP | 362.68 billion USD2025 · WB | 254.37 billion USD2025 · WB |
| GDP per capita | 3,924.38 USD2025 · WB | 5,409.68 USD2025 · WB |
| GDP growth | -2.83 %2025 · WB | -2.16 %2025 · WB |
| Policy interest rate | ||
| Inflation · annual average | 42.17 %Annual average · 2025 · WB | 0.3 %Annual average · 2025 · WB |
| Inflation · latest year-on-year figure | ||
| Unemployment | 8.3 %ILO est.2025 · WB | 15.49 %ILO est.2025 · WB |
| Budget balance (% of GDP) | -5.7 %IMF est.2025 · IMF | -6.4 %IMF est.2025 · IMF |
| Gross public debt (% of GDP) | 37.3 %IMF est.2025 · IMF | 53.9 %IMF est.2025 · IMF |
| Current account balance (% of GDP) | 0.6 %IMF est.2025 · IMF | 2.99 %2024 · WB |
| Population | 92,417,6812025 · WB | 47,020,7742025 · WB |
| Area | 1,745,150 km²2023 · WB | 435,050 km²2023 · WB |
| Military expenditure | ||
| Military expenditure (% of GDP) |
Definitions, dates and sources
Blank cells are not zero. Average annual inflation and the latest year-on-year figure appear in separate rows: they are not the same measure. Every annual indicator retains its reference year; when the years differ, the figures are identified as not directly comparable. When a figure is unavailable from the World Bank, an annual IMF estimate is used and identified as such. The latest year-on-year figure is the latest official release verified as of 7 October 2026. This includes advance releases marked as provisional. Mexico may have a fortnightly figure before the full month is published; it is not automatically compared with a monthly figure. The publication date is retained in each source’s details; it does not replace the observation period or the annual average. Policy rates carry their own dates and represent different instruments. Spain and France share the ECB rate. Balances are positive for surpluses and negative for deficits. The IMF may use fiscal years; unemployment retains each source’s definition (ILO estimates, IMF WEO or PCBS), as stated in the details. For Palestine, debt and the fiscal balance cover central government and retain the PCBS definition; they are not presented as consolidated general government. These are economic magnitudes, not measures of relationship quality.
Area retains each source’s territorial coverage; it does not determine sovereignty or effective control. Canada uses an archived national geographic reference. Military expenditure retains the 2024 SIPRI sample distributed by the World Bank: the amount and percentage of GDP use that same definition, which differs from NATO’s. It is not an approved budget or a 2026 figure. Information from the Stockholm International Peace Research Institute (SIPRI). Military expenditure database · Terms of use0
Indicators reviewed: 2026-10-07. Each source retains its original access date; this review does not turn all the data into 2026 observations. Figures may be revised.
- Nominal GDP
- Current USDIran: 2025 · World Bank · Official World Bank series; latest verified period available for this series in the 2023–2025 query.Iraq: 2025 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- GDP per capita
- Current USD per personIran: 2025 · World Bank · Official World Bank series; latest verified period available for this series in the 2023–2025 query.Iraq: 2025 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- GDP growth
- Annual real change (%)Iran: 2025 · World Bank · Official World Bank series; latest verified period available for this series in the 2023–2025 query.Iraq: 2025 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- Policy interest rate
- Central bank instrument (%)
- Inflation · annual average
- Average annual change in headline CPI (%)Iran: 2025 · Annual average change in the CPI (%) · World Bank · Official World Bank series; latest verified period available for this series in the 2023–2025 query.Iraq: 2025 · Annual average CPI change (%) · World Bank · Annual World Bank observation, with its original year; not monthly data.
- Inflation · latest year-on-year figure
- Headline CPI relative to the same period of the previous year (%); monthly or fortnightly frequency stated
- Unemployment
- % of the labour force; definition used by the stated institutionIran: 2025 · ILO modelled estimate, % of the labour force · World Bank · ILO est. · Official World Bank series; latest verified period available for this series in the 2023–2025 query.Iraq: 2025 · ILO modelled estimate; percentage of the labour force · World Bank · ILO est. · Annual World Bank observation, with its original year; not monthly data.
- Budget balance
- General government (% of GDP)Iran: 2025 · IMF · IMF est. · IMF WEO estimate, not a monthly observation. Retains the country's fiscal year where it differs from the calendar year.Iraq: 2025 · IMF · IMF est. · WEO general-government estimate, % of GDP. Not an observed balance for the current month.
- Gross public debt
- General government (% of GDP)Iran: 2025 · IMF · IMF est. · IMF WEO estimate, not a monthly observation. Retains the country's fiscal year where it differs from the calendar year.Iraq: 2025 · IMF · IMF est. · WEO general-government estimate, % of GDP. Not an observed balance for the current month.
- Current account balance
- % of GDPIran: 2025 · IMF · IMF est. · IMF WEO estimate. The annual reference may follow Iran's fiscal calendar.Iraq: 2024 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- Population
- PeopleIran: 2025 · World Bank · Official World Bank series; latest verified period available for this series in the 2023–2025 query.Iraq: 2025 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- Area
- Total area in km²; territorial coverage of the sourceIran: 2023 · World Bank / FAO · Official World Bank series; latest verified period available for this series in the 2023–2025 query.Iraq: 2023 · World Bank · Annual World Bank observation, with its original year; not monthly data.
- Military expenditure
- Current USD per year; SIPRI series
- Military expenditure (% of GDP)
- Percentage of GDP; SIPRI definition, not NATO’s definition
Other data specific to this relationship
What they buy and sell
Documented selection, not an exhaustive list. Cells without a figure do not mean zero value; some products are identified without a verified amount.
Iran to Iraq
| Product or sector | Value / share |
|---|---|
| Dairy products, eggs and honey | 182.1 M USD2024 · Source |
| Vehicles and components | 139.2 M USD2024 · Source |
| Pharmaceutical products | 55.6 M USD2024 · Source |
| Meat and edible offal | 48.2 M USD2024 · Source |
| Electrical and electronic equipment | 24.8 M USD2024 · Source |
| Machinery and mechanical appliances | 15.2 M USD2024 · Source |
| Metal ores | 6.4 M USD2024 · Source |
| Mineral fuels and oils | 2.6 M USD2024 · Source |
Iraq to Iran
| Product or sector | Value / share |
|---|---|
Connections between people
Residents, study and travel
Blank cells: data unavailable. Each measure retains its definition and period.
| Indicator | Value | Period / source |
|---|---|---|
| Residents from Iran living in Iraq | ||
| Residents from Iraq living in Iran | ||
| Study and training: Iran in Iraq | ||
| Study and training: Iraq in Iran | ||
| Academic stays: Iran in Iraq | ||
| Academic stays: Iraq in Iran | ||
| Travel: Iran to Iraq | ||
| Travel: Iraq to Iran |
What each figure measures
Residents are counted by nationality and the coverage of the stated register, not as people born in the other country or as new arrivals in one year. PERE includes dual nationals and people born outside Spain. Study with OPT and stays carrying academic credit are different measures. Travel may include several visits by the same person; FRONTUR arrivals require an overnight stay, whereas the Canadian survey includes day visits. These figures are neither added together nor automatically compared across directions.
Mobility data added or reviewed: 2026-10-07. Reference periods may be earlier.
Underlying ties
History, institutions and long-standing issues.
The scale of both economies
Nominal GDP for Iran is 362.7 billion USD (2025), compared with 254.4 for Iraq (2025). The reference populations are 92.42 and 47.02 million, respectively. In the same year, the economy of Iran was 1.43 times that of Iraq in nominal GDP. The comparison provides context on market size, but does not, on its own, measure influence, well-being or diplomatic closeness. Estimates and their sources retain their labels in the tables. [4] [5] [6] [7]
Recent developments
Recent developments and latest available data · Review: 2026-10-08
Bilateral context
Fuad Hussein and Abbas Araghchi met on 21 June 2025 on the sidelines of the OIC Council of Foreign Ministers in Istanbul. According to the Iraqi foreign ministry, they examined the humanitarian consequences of the escalation and the risk of the conflict spreading regionally. [1]
Cooperation and bilateral issues
Hussein called for an end to Israeli attacks on Iran, protection of civilians and greater diplomatic efforts through regional and international channels. He advocated returning to negotiations as a way to prevent further deterioration. The ministers also addressed strengthening relations and continuing consultations on shared matters within a framework of respect for sovereignty. The account confirms this Iraqi diplomatic position, without announcing a new bilateral military obligation. [1]
What merchandise trade shows
In 2024, merchandise trade between the two countries (Iran and Iraq) totalled 3,140.2 million current USD. Shipments from the first to the second were 3,139.2 million; those in the opposite direction, 0.948 million. The difference between the two flows was 3,138.3 million, in favour of Iran. This is a goods balance, not the total balance of the economic relationship: it excludes services, income and transfers. Both directions come from a single customs reporter to avoid adding mirror records. [2]
The partner's share of exports
Sales from Iraq to the partner represented 0.000902% of its worldwide goods exports in 2024. The share compares the same reporter, year and coverage. It measures export concentration, not the percentage of GDP dependent on this relationship. A partner may be important in a specific sector even if its share of total goods trade is small. [2]
Documented trade sectors
Within the selected chapters, dairy products, eggs and honey stands out in shipments from Iran to Iraq, at 182.1 million USD in 2024. The table compares eight selected chapters with the same coverage as the trade total. It is not a complete list or proof that the first item in this selection is the leading product across the entire relationship. A chapter groups numerous goods: machinery and components, for example, do not describe a single business transaction. [3]
Sources and data
Periods and scope of the figures
Institutional sources and periods accompany each figure. Annual trade, investment positions, residents and visits are distinct measures. Empty cells do not mean zero. Statements of intent are not presented as project implementation or treaties in force.
- Bilateral relations — IRN-IRQ
mofa.gov.iq · Institutional source · Accessed: 2026-10-08
- Bounded matrix; reporter, partner, year, chapter and direction identified in each record; reused verified primary payload, not re-downloaded
UN Comtrade · Institutional source · Accessed: 2026-10-08
- Bounded matrix; reporter, partner, year, chapter and direction identified in each record
UN Comtrade · Institutional source · Accessed: 2026-10-08
- NY.GDP.MKTP.CD; 2023–2025; country and period preserved; no military series
World Bank · Institutional source · Accessed: 2026-10-07
- Official series — gdp
World Bank · Institutional source · Accessed: 2026-10-07
- SP.POP.TOTL; 2023–2025; country and period preserved; no military series
World Bank · Institutional source · Accessed: 2026-10-07
- Official series — population
World Bank · Institutional source · Accessed: 2026-10-07
Additional sources on products and human connections
- UN Comtrade
2026-10-08 · Accessed: 2026-10-08 · Bounded matrix; reporter, partner, year, chapter and direction identified in each record.