Gulf States Draw Economic Line on Iraq-Based Iranian Militia Strikes

GULF COOPERATION COUNCIL SEEKS TO CURB IRANIAN-BACKED MILITIA ATTACKS FROM IRAQI TERRITORY

GCC Secretary-General Jassim Mohammed Al-Badawi flew to Baghdad last week carrying a pointed economic and security message: Gulf states will no longer absorb, without diplomatic consequence, the cost of drone and missile attacks launched from Iraqi soil. The visit signals how seriously Gulf capitals now treat Iranian-backed militia activity as a direct threat to infrastructure investment and regional business stability.

Iraqi state media reported that Al-Badawi arrived in Baghdad on Tuesday afternoon for official talks focused on preventing further attacks originating from Iraqi territory. A government source told Shafaq News Agency that the secretary-general would “discuss developments in the region and to emphasize that Iraqi territory will not be used to launch attacks on Gulf states.” The talks ran parallel to a domestic disarmament initiative by Iraq’s Prime Minister Ali al-Zaidi, who has been pressing militias to surrender weapons, an effort that has met sustained resistance from armed groups with deep financial and operational ties to Iran.

The economic stakes are not abstract. Iranian-backed militias, many operating under the Popular Mobilization Forces umbrella, have widened their targeting scope beyond US military installations and the Kurdistan Region to include energy sites, airports, and critical infrastructure across Saudi Arabia, the United Arab Emirates, and Kuwait. Drone and missile strikes represent a low-cost, difficult-to-attribute threat that has already forced Gulf states to commit heavily to air defense systems and hardened infrastructure. That spending is a direct tax on capital that would otherwise flow into development and diversification projects.

Meanwhile, in Baghdad, Al-Badawi met with Iraq’s Supreme Judicial Council President Judge Faiq Zidan, with Iraq’s Ambassador to Saudi Arabia, Safia al-Suhail, in attendance. The two sides discussed judicial and legal cooperation, and the broader agenda, as reported by Iraqi state media, emphasized strengthening ties between Iraq and GCC member states across multiple sectors.

The timing sharpened the diplomatic pressure. The visit came in the wake of the funeral of Iran’s late Supreme Leader Ali al-Khamenei, a moment when Tehran has historically used proxy networks to project regional influence. That convergence raised immediate questions about whether dialogue alone can move Baghdad to constrain militias that operate with considerable autonomy and Iranian financial backing.

The structural problem is stark. Iraqi officials hold limited leverage over armed groups that answer primarily to Tehran and command substantial independent resources. Al-Badawi’s stated objective was to secure commitments that Iraqi territory would not serve as a future launch point, a pledge that demands both enforcement mechanisms and genuine political will from Baghdad. Sources indicated the GCC delegation framed Gulf support for Iraq “in various fields” as a counterweight to the security threat, pairing diplomatic pressure with tangible incentives for cooperation.

Whether the visit produced concrete commitments remains unclear. The GCC has long relied on economic incentives and dialogue to manage regional tensions, yet the expanding pattern of militia attacks suggests that incentives alone carry diminishing returns without enforcement capacity or real consequences for violations. The open question for Gulf investors and policymakers alike is whether Baghdad can, or will, exercise enough control over these armed groups to reduce the risk premium now embedded in regional infrastructure and energy markets.