Iran And Iraq

Iranian products account for a significant chunk of Iraq’s imports, but Iran’s presence in Iraq is most pronounced through growing commodity exports and the numerous Iranian pilgrims who regularly visit holy shrines in Karbala and Najaf. Iranian commodities, from vegetables to electronic products, construction materials, machinery, and automobiles, have flooded Iraqi markets. Iran has also been active in health, education, and major infrastructural projects in Iraq. The relationship is friendly and comprehensive.
Prior to the fall of Saddam Husain, Iran had to contend with decades of hostile, expansionist pan-Arabist ideology, espoused by Sunni-dominated Iraq. Both the monarchical and revolutionary Iran had to grapple with a hostile Arab neighbor to the west. While the pro-American Shah of Iran was bent on reining in the intransigence of Soviet-backed Baghdad – a state which engaged in territorial disputes and sponsored separatist movements within Southern Iran – a nascent post-revolutionary Iran greatly suffered as a result of the 1980 Iraqi invasion. From here.