Iraq is caught in the crossfire of the Iran war, with attacks by both sides on its soil

IRBIL, Iraq (AP) — Iraq is getting caught in the crossfire of the Iran war as the only country facing strikes from both sides, and that threatens to drag the nation that has so far avoided two years of regional turmoil into a full-blown crisis.

As the war nears two full weeks, Iraq’s situation is growing more desperate. Disruptions to Gulf shipping and strikes on oil fields and infrastructure have all but halted exports, jeopardizing a state that relies on such trade for the bulk of its revenue.

If the shutdown continues, Baghdad could be unable to meet its oversized public‑sector payroll as soon as next month, risking widespread unrest, two Iraqi Kurdish officials said.

The federal government has appealed to northern Kurdish leaders to resume exports via a pipeline to Turkey, but talks remain deadlocked over longstanding domestic issues. The officials spoke to The Associated Press on condition of anonymity to discuss sensitive political matters.

In the meantime, a parallel conflict to the wider war has escalated between Iran-backed Iraqi militia groups and the U.S. Near-daily drone strikes have targeted American interests across the country, while the U.S. has struck back against militia bases to defend its troops.

Since the war began Feb. 28 following a major U.S. and Israeli strike in Iran, drone and missile attacks have targeted American interests in Iraq, including military bases in the Baghdad and Irbil airports, and U.S. diplomatic facilities. Iran and its allied Iraqi militias also have struck oil fields and energy infrastructure to escalate the economic toll.

Unlike other Middle Eastern states touched by the war, Iraq hosts both entrenched Iran-aligned forces and significant U.S. interests. Its economy depends overwhelmingly on oil, so disruptions to production or exports through the Strait of Hormuz could sharply cut government revenue just as a fraught political transition grips Baghdad.

The longer the conflict lasts, the greater the risk that economic shocks, political paralysis and friction with Iran‑backed militias will combine to unravel Iraq’s hard‑won relative stability.

Leaders in Baghdad and Irbil continue to urge caution and insist the war must not be fought on their soil, but the conflict’s trajectory is increasingly slipping beyond their control. The U.S. has communicated assurances to Iraqi leaders that the country won't be dragged into the regional war, according to the two Kurdish officials who spoke to AP.

In the war's opening days, drone and rocket strikes by Iran and allied groups began targeting U.S. bases, diplomatic missions and oil facilities. In Irbil, the capital of Iraq’s autonomous Kurdish region, near‑daily drone attacks have targeted not only U.S. military and allied interests but also commercial sites and even hotels.

Iran-backed groups have also struck Kurdish groups based in northern Iraq after reports that Washington planned to arm some of them to press against Tehran. Some Iranian Kurdish leaders have signaled their willingness to mount cross-border operations into Iran if supported by the U.S..

Iraq is operating under a caretaker government after the U.S. opposed the nomination of former Prime Minister Nouri al‑Maliki. Caretaker premier Mohammed Shia al‑Sudani, with even more limited powers, lacks the influence to rein in powerful militia groups.

The U.S. has struck back, striking militia sites across the country, including in Jurf al-Sakhr, south of Baghdad, northern Iraq and in al-Qaim, along the Iraq-Syria border.

As in past upheavals, Iraqis have learned to adapt to daily violence that intrudes on everyday life.

At an Irbil cafe, patrons heard the whine of incoming drones, then a muffled explosion, before a plume of smoke rose on the horizon where it was shot down. A waiter urged calm, saying the strikes were aimed at the U.S. Consulate or airport and posed no direct threat to customers.

The gravest threat to Iraq’s stability is disrupted oil production, which could cripple government revenues. The Kurdish officials said Baghdad warned them that public-sector payrolls could be disrupted as soon as next month.

To alleviate the pressure, Baghdad has asked for exports of at least 250,000 barrels per day of crude from fields in Kirkuk via the pipeline to Ceyhan in Turkey that runs across Kurdish territory. Talks have stalled, however, after Kurdish negotiators conditioned the move on lifting an existing U.S. dollar embargo and restoring economic benefits tied to trade.

Iraq’s government ordered production curtailed from oil fields in southern Iraq, where the majority of its 4.8 million barrels per day is produced, after the war all but stopped traffic through the Strait of Hormuz and militias attacked facilities. Sales from oil account for over 90% of state revenues.

Iraq has one of the world’s largest public‑sector workforces and pensioner rolls, and past payment delays have sparked mass protests.

Production has been halted at oil fields hit by strikes. In the Kurdish region, Canada’s ShaMaran Petroleum and U.S. private firm HKN have suspended output at the Sarsang and Atrush blocks.

“If oil exports are disrupted, the immediate impact would likely be a decline in the value of the Iraqi dinar. This would quickly trigger inflation, and within a short time the prices of basic goods could rise sharply,” said Farhad Soleimanpour, an Iraqi Kurdish political analyst.

“For the Kurdistan region, the situation could be even more difficult because it does not have its own central bank or significant financial reserves. Iraq may be able to withstand the shock for several months, but the Kurdistan Region would likely face immediate financial pressure,” he added.

The war has also battered power supplies.

The Khor Mor gas field in the autonomous Kurdish region is offline, cutting electricity generation by nearly two‑thirds. Where the region once provided 24‑hour power, households now receive just four to six hours a day, said Omed Ahmad, spokesperson for the Kurdistan Region’s Ministry of Electricity.

Since the November 2025 election, Iraq has been without a government after the U.S. opposed the return of al‑Maliki, the former prime minister. The war complicates the fraught transition, forcing a caretaker administration with severely limited powers to manage the fallout.

But that caretaker status also lets Iraqi leaders deflect responsibility by claiming they lack the authority to act, said Iraq analyst Tamer Badawi. “No one wants to take this big responsibility at the moment,” he said.

That would mean taking charge and reining in multiple armed groups, from Iran‑backed militias targeting U.S. interests to Kurdish‑Iranian opposition factions, whose actions deepen fault lines that could spark civil unrest.

Even if some oil is exported via the pipeline, there is no way to assure the infrastructure will not come under attack by militia groups, officials have warned.

Iraq has defied the odds so far, largely avoiding the regional upheaval from the war in Gaza that began in 2023. Political and religious leaders have remained committed to keeping the country out of wider conflict and preserving its stability.

“Iraq faces pressure to maintain neutrality while different political groups inside the country have opposing positions regarding the conflict," Soleimanpour said. "Some factions support closer relations with Iran, while others prefer stronger cooperation with the United States and Western countries. This internal division increases political tension.”

FILE - Water buffaloes swim near the Nihran Bin Omar oil field north of Basra, Iraq, Wednesday, March 22, 2023. foreign investment in Iraq's history. (AP Photo/Nabil al-Jurani, File)

FILE - A man walks along the shore as oil tankers and cargo ships line up in the Strait of Hormuz, as seen from Khor Fakkan, United Arab Emirates, Wednesday, March 11, 2026. (AP Photo/Altaf Qadri, file)

Relatives grieve in Baghdad, Iraq, on Thursday, March 12, 2026, during a funeral for members of the Popular Mobilization Forces who were killed in a U.S. airstrike in Qaim. (AP Photo/Hadi Mizban)

Relatives grieve in Baghdad, Iraq, on Thursday, March 12, 2026, during a funeral for members of the Popular Mobilization Forces who were killed in a U.S. airstrike in Qaim. (AP Photo/Hadi Mizban)

Members of the Popular Mobilization Forces attend a funeral in Najaf, Iraq, Friday, March 13, 2026 for colleagues who were killed in a U.S. airstrike in Qaim. (AP Photo/Anmar Khalil)

Relatives grieve in Baghdad, Iraq, on Thursday, March 12, 2026, during a funeral for members of the Popular Mobilization Forces who were killed in a U.S. airstrike in Qaim. (AP Photo/Hadi Mizban)

Members of the Popular Mobilization Forces attend a funeral in Najaf, Iraq, Friday, March 13, 2026 for colleagues who were killed in an airstrike in Qaim. (AP Photo/Anmar Khalil)

SEOUL, South Korea (AP) — The U.S. military says a KC-135 refueling aircraft supporting operations against Iran crashed in western Iraq, killing at least four of its six crew members.

The U.S. Central Command, which oversees the Middle East, said the crash followed an unspecified incident involving two aircraft in “friendly airspace,” and that the other plane landed safely.

Here’s what is known so far about the tanker, which is the fourth publicly acknowledged U.S. aircraft to crash during the war against Iran:

The KC-135 Stratotanker is a U.S. Air Force aircraft used to refuel other planes in midair, allowing them to travel longer distances and maintain operations longer without landing. The plane is also used to transport wounded personnel during medical evacuations or conduct surveillance missions, according to military experts.

Based on the same design as the Boeing 707 passenger plane, the tanker has been in service for more than 60 years, supporting the U.S. Air Force, Navy and Marine Corps as well as allied aircraft, according to an Air Force description. The aging plane is set to be gradually phased out as more of the next-generation KC-46A Pegasus tankers enter service.

Despite upgrades over the years, the KC-135s' age has fueled concern about their reliability and durability.

“The last of these planes were produced in the 1960s,” said Yang Uk, a security expert at South Korea’s Asan Institute for Policy Studies. He added that the transition to the KC-46A has progressed more slowly than expected.

According to the Congressional Research Service, the Air Force last year had 376 KC-135s, including 151 on active duty, 163 in the Air National Guard and 62 in the Air Force Reserve.

A basic KC-135 crew has three people: a pilot, co-pilot and boom operator. Nurses and medical technicians are added in aeromedical evacuation missions.

Refueling typically happens at the back of the plane, where the boom operator is located. A fuel boom is lowered to connect with fighters, bombers or other aircraft. On many of the planes, the boom operator works lying face down while looking out of a window on the underside of the plane.

Some KC-135s can also refuel planes from pods on their wings. The tankers also have room to carry cargo or passengers if needed.

Refueling tankers could play an increasingly important role if the Iran war drags on, as U.S. aircraft may need to fly longer missions to pursue Iranian forces retreating deeper into the country, said Yang.

The U.S. Central Command said four of the six crewmembers on board the crashed KC-135 have been confirmed dead and that rescue efforts are continuing. It said the circumstances of the crash are under investigation but that the loss of the aircraft was “not due to hostile or friendly fire.”

A U.S. official, who also spoke on condition of anonymity to discuss the developing situation, said the other plane involved was also a KC-135. Yechiel Leiter, the Israeli ambassador to the U.S., wrote on X that the other plane landed safely in Israel.

Yang said it would be rare for a refueling tanker to be downed by enemy fire because such operations are usually conducted in the rear of combat zones.

The crash came after three U.S. F-15E fighter jets were mistakenly downed last week by friendly Kuwaiti fire.

KC-135s have previously been involved in several fatal accidents. The most recent occurred on May 3, 2013, when a KC-135R crashed after takeoff south of Chaldovar, Kyrgyzstan, while supporting the war in Afghanistan.

In that crash, the crew experienced problems with the plane’s rudder, according to a U.S. Air Force investigation. While they struggled to stabilize the plane, the tail section broke away and the plane exploded midair, killing all three crewmembers onboard.

The most serious mid-air collision involving the plane happened in 1966, when a B-52 bomber carrying nuclear bombs struck a tanker near Palomares, Spain.

The accident caused the tanker to crash, killing four onboard. The disaster led to an extensive decontamination effort to clean up nuclear material dispersed when conventional explosives in the hydrogen bombs detonated after hitting the ground.

Schreck reported from Bangkok. AP writers Ben Finley and Konstantin Toropin in Washington contributed.

FILE - A U.S. Air Force KC-135 Stratotanker refueling tanker aircraft takes off from the Kadena Air Base airfield in Kadena town, west of Okinawa, southern Japan, Wednesday, Aug. 30, 2023. (AP Photo/Hiro Komae, File)

FILE - A U.S. Air Force KC-135 Stratotanker aerial refueling aircraft performs a flyover during the national anthem before an NCAA college football game between Central Florida and Georgia Tech, Sept. 24, 2022, in Orlando, Fla. (AP Photo/Phelan M. Ebenhack, File)