Iraq has launched a major diplomatic initiative aimed at reducing tensions in the Middle East and restoring regional stability. Foreign Minister Fuad Hussein announced that Iraq has proposed to mediate between the eight member states of the Gulf Cooperation Council (GCC) and Iran to resolve existing disagreements. The move follows recent U.S. and Israeli military operations against Iran and the closure of the strategically vital Strait of Hormuz, which has severely affected Iraq’s economy.

According to reports, Hussein discussed the mediation proposal in detail with his Iranian counterpart Abbas Araghchi. The closure of the Strait of Hormuz has caused a sharp economic crisis in Iraq, as nearly 95 percent of its national revenue depends on oil exports transported through the waterway. Araghchi’s visit to Iraq also includes coordination for the funeral of Iran’s late Supreme Leader Ayatollah Ali Khamenei, to be held in the holy cities of Najaf and Karbala.

The visit comes at a time when the U.S.–Iran memorandum of understanding remains fragile. Tehran reiterated its demand that Washington fully comply with the agreement, particularly the clause calling for ceasefires and an end to hostilities across all fronts, while condemning repeated U.S. attacks on southern Iranian military bases and ports.