Shatt al-Arab dispute
The Shatt al-Arab dispute was a territorial dispute that took place in the Shatt al-Arab region from 1936 until 1975. The Shatt al-Arab was considered an important channel for the oil exports of both Iran and Iraq, and in 1937, Iran and the newly independent Iraq signed a treaty to settle the dispute. In the 1975 Algiers Agreement, Iraq made territorial concessions—including the Shatt al-Arab waterway—in exchange for normalized relations. In return for Iraq agreeing that the frontier on the waterway ran along the entire thalweg, Iran ended its support for the Peshmerga in the Second Iraqi–Kurdish War. The Iraqi government reneged on the agreement shortly before launching the Iran–Iraq War in 1980, but accepted it once more after the war.
Background
Since the Ottoman–Persian Wars of the 16th and 17th centuries, Iran and the Ottomans fought over Iraq and full control of the Shatt al-Arab until the signing of the Treaty of Zuhab in 1639 which established the final borders between the two countries.Clashes
Pahlavi Iran–Iraqi Kingdom tensions
The Shatt al-Arab was considered an important channel for both states' oil exports, and in 1937, Iran and the newly independent Iraq signed a treaty to settle the dispute. That year, Iran and Iraq joined the Treaty of Saadabad, reestablishing good relations for decades.Pahlavi Iran–Ba'athist Iraq tensions
Crisis in relations, 1969–1974
In April 1969, Iran abrogated the 1937 treaty and ceased paying tolls to Iraq when its ships used the waterway. This marked the beginning of a period of acute Iraqi-Iranian tension that continued until the 1975 Algiers Agreement. In 1969, Saddam Hussein, Iraq's deputy prime minister, stated: "Iraq's dispute with Iran is in connection with Khuzestan, which is part of Iraq's soil and was annexed to Iran during foreign rule."In 1971, Iraq broke diplomatic relations with Iran after claiming sovereignty rights over the islands of Abu Musa, Greater and Lesser Tunbs in the Persian Gulf following the withdrawal of the British. As retaliation for Iraq's claims to Khuzestan, Iran became the main patron of Iraq's Kurdish rebels in the early 1970s, giving the Iraqi Kurds bases in Iran and arming the Kurdish groups. In addition to Iraq fomenting separatism in Iran's Khuzestan and Balochistan, both states encouraged separatist activities by Kurdish nationalists in the other state.