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The US suggested it will oppose the release of billions of dollars in Iranian funds from South Korea until Tehran returns to full compliance with a nuclear deal.
Despite its immense oil and gas reserves, Iraq remains dependent on imports to meet its energy needs, and neighbouring Iran currently supplies a third of its gas and electricity.
This week in Iraq: The US has admitted that Islamic State is far from being defeated while the Iraqi interior ministry claimed that IS leader's health is deteriorating.
Analysis: Unlike in 2006, Gulf states and the international community are unlikely to provide multi-billion packages to rebuild Lebanon once Israel's war ends.
Analysis: With Hezbollah facing internal reorganisation after Nasrallah's death, there is space for other actors to manoeuvre within Lebanon's political system.
US sanctions on Iranian oil and gas, on which Iraq is reliant on have hampered Baghdad's payments for imports, putting it in heavy arrears and leading Tehran to retaliate by cutting gas flows regularly.
Analysis: Despite Iran's influence over Iraqi politics and militias, there is opposition to Tehran's ambitions in the country.
Analysis: Isaac Herzog's visits to Albania and Serbia underscore Israel's expanding ties with the Balkans amid global isolation due to its war on Gaza.
Iran, Russia and the US reacted positively to a first day of talks aimed at rescuing an international agreement on Tehran's nuclear programme.
This week's round-up of under-reported news from Iraq focuses on violence faced by those who dare call for an end to Iran's influence in Iraq.