The last United States troops left Iraq on Wednesday, September 30, 2026, marking the successful conclusion of a 12-year mission against the ISIS terror group.
The final U.S. departure from Iraqi bases marked the close of a deployment that began over two decades ago. The U.S. Department of Defense announced the end of the operation, declaring the successful conclusion of its 12-year mission against the ISIS terror group in the country.
Revolutionary Guard Corps Response to the Iraq Withdrawal
In Tehran, the Islamic Revolutionary Guard Corps welcomed the American departure as a historic victory
and an outcome of the Iraqi people’s resistance. In an official statement, the organization stated that America must leave the region and leave the management of security to the peoples themselves.
The IRGC also distributed a 26-page letter urging American voters to remove congressional allies of President Trump, reject U.S. backing for Israel, and oppose foreign military interventions. Meanwhile, government spokesperson Fatemeh Mohajerani spoke to the state-run IRNA news agency regarding the official U.S. response received by Tehran.
The withdrawal from Iraq also raised concerns among other Iraqis, particularly in the Kurdish region. Meanwhile, Etihad Rail launched a new freight service connecting Fujairah on the Gulf of Oman outside the Strait of Hormuz with Abu Dhabi’s industrial center about 200 kilometers away, offering container trains three times a week with customs clearance at the Abu Dhabi end as Gulf governments rushed to secure transport networks when maritime routes face disruption.
Diplomatic Standoff Over the Strait of Hormuz
Iranian Foreign Minister Abbas Araghchi recently proposed a seven-day cessation of hostilities across the region including Lebanon, the lifting of sanctions on Iranian oil, an end to the U.S. naval blockade, and the release of at least $12 billion in frozen Iranian assets in exchange for reopening the waterway, with published accounts also mentioning a 60-day ceasefire roadmap and a demand for about $24 billion in frozen funds.
U.S. officials rejected the terms. United Nations Ambassador Mike Waltz told CNN’s State of the Union that the proposal was turned down because Iranian negotiators were asking for everything up front. Waltz stated that the administration doubted Tehran was negotiating in good faith to permanently end its nuclear program, pointing out that Iran had previously violated the 14-point framework agreement signed in Pakistan in June by attacking international shipping in violation of international law, drawing condemnation from 146 nations.
“The president is just not confident that the Iranians are coming in good faith and that we will truly negotiate the end of their nuclear program.”
Mike Waltz, U.S. Ambassador to the United Nations, via The Guardian
President Trump echoed those assessments, asserting that desperation over Iran’s collapsing economy drove the peace overture, predicting the conflict would be over very soon while warning that Washington faces a choice between tougher military action or a peace deal. Administration officials maintained that economic pressure would continue through Operation Economic Outcast, which recently added new sanctions targeting ten individuals and entities across Iran, Hong Kong, and Pakistan accused of supplying the Iranian defense ministry.
Economic Strain and Internal Unrest in Iran
While diplomatic maneuvers continued in New York and Middle Eastern capitals, economic conditions inside Iran worsened significantly. That decline followed a previous low of 2.2 million rials recorded on September 2.
Against the backdrop of currency devaluation and the ongoing conflict, protests that erupted late last year across the country over the collapsing economy and worsening conditions led to a deadly crackdown by authorities. Rights groups reported that thousands were killed and tens of thousands were arrested as demonstrators increasingly called for the overthrow of the Islamic Republic, while Iranian officials reported a substantially lower death toll.
President Pezeshkian, during an interview on CBS show Face the Nation, stated that his country was ready for talks on its nuclear program and other issues but would not accept bullying or coercion, noting that Iran is not seeking war but will defend itself. Meanwhile, Araghchi stated on NBC’s Meet the Press that his country was fully prepared for the war to be resumed while keeping diplomacy open.
A State Department spokesperson responded to the statements from Tehran by issuing a statement to CBS News describing the Revolutionary Guard’s efforts as a desperate attempt to lie to the American people that does not change facts about the regime’s record of maliciousness abroad.
Government spokesperson Fatemeh Mohajerani conveyed to the state-run IRNA news agency that the Iranian Cabinet, following Araghchi’s return from New York, would make every effort to bring agreements to fruition and stand up for the rights of the Iranian people under President Pezeshkian’s leadership.
As indirect discussions continued, a State Department spokesperson emphasized that the regime continues to choose terror over prosperity while ordinary citizens pay the price, calling the latest communications from Tehran nothing more than a smoke screen.
The Treasury Department’s Operation Economic Outcast campaign continues to advance across international jurisdictions, freezing financial lifelines tied to Tehran’s military procurement network and widening the net on facilitators operating in multiple foreign financial hubs.
With regional diplomatic channels remaining fluid, the broader conflict approaches the end of its seventh month with no definitive resolution to the maritime blockade in sight.
The unfolding diplomatic exchanges highlight the deep divide between Washington's insistence on comprehensive security concessions and Tehran's strategy of using regional chokepoints to secure sanctions relief.
