The new office “will facilitate cooperation in the oil industry and the transfer of engineering and technical services” to Iraq, it said.
The announcement comes as Iran faces US sanctions on its oil exports. The United States have taken actions against Iran in as many weeks.
Last week, it said it would stop waivers for countries buying Iranian oil, in an attempt to push Iran’s oil exports to zero. The United States also blacklisted Iran’s elite Revolutionary Guard Corps.
Efforts by the Trump administration to impose political and economic sanctions on Tehran began with last year’s US withdrawal from the nuclear deal it and other world powers negotiated with Iran in 2015.
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