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BAGHDAD (AP) U.S. troops fired tear gas on Wednesday as Iran-backed militiamen and other protesters gathered outside the American Embassy in Baghdad for a second day set fire to the roof of a reception area inside the embassy compound.

Dozens of Iran-allied militiamen and their supporters had camped out at the gates of the embassy overnight, a day after they broke into the compound, trashing a reception area and smashing windows before pulling back. It was one of the worst attacks on a U.S. diplomatic mission in years.

The U.S. Marines guarding the embassy fired tear gas Wednesday as more crowds arrived and after the protesters lit a fire on the roof of the reception area. Smoke rose from the building. There have been no reports of any injuries since the protests began.

The militiamen were protesting deadly U.S. airstrikes that targeted an Iran-backed militia over the weekend, killing 25 fighters. Those strikes were in response to a rocket attack on an Iraqi army base that killed a U.S. contractor.

The violence comes as Iran and its allies have faced unprecedented mass protests in recent months and after heavy U.S. sanctions on Iran that have cratered its economy and raised tensions across the region. In Iraq, the protesters have been angered at their own governments corruption and economic mismanagement, as well as its close ties to Tehran.

President Donald Trump blamed Iran for the attack on the embassy and Defense Secretary Mark Esper later announced the immediate deployment of an infantry battalion of about 750 soldiers from the Armys 82nd Airborne Division to the Middle East. He did not specify their destination, but a U.S. official familiar with the decision said they will go to Kuwait.

Iran has denied any involvement in the attack on the embassy. Foreign Ministry spokesman Abbas Mousavi was quoted by state media on Tuesday as warning the U.S. against any miscalculation in the worsening standoff.

Irans supreme leader, Ayatollah Ali Khamenei, criticized the U.S. airstrikes on the Iran-backed Iraqi militia on Sunday. In remarks carried by the semi-official ISNA news agency, he accused the U.S. of taking revenge on Iran for the defeat of the Islamic State group, which he said was an American creation.

In an apparent reference to Trumps allegations of Iranian involvement, Khamenei said that if the Islamic Republic makes a decision to confront any country, it will do it directly.

The U.S. and Iran have vied for influence over Iraq since the 2003 U.S.-led invasion that toppled Saddam Hussein. Iran has close ties to Iraqs Shiite majority and many of its major political factions, and its influence has steadily grown since then.

Iran helped to mobilize tens of thousands of mostly Shiite militiamen to battle the Islamic State group when it stormed across northern and western Iraq in 2014 as the armed forces collapsed. In the subsequent campaign against the extremists, the U.S. and Iran both provided vital aid to Iraqi forces, who eventually declared victory in December 2017.

The political influence of the Iran-backed militias, known as the Popular Mobilization Forces, has risen in recent years, and their allies dominate the parliament and the government. That has made them the target of mass protests since October that are unrelated to the attack on the embassy.

The anti-government protesters have attacked Iranian diplomatic missions and the local headquarters of parties affiliated with the militias across southern Iraq. They have also set up a major protest camp in central Baghdad.

For weeks, the anti-government protesters have been trying to enter the Green Zone housing the government and the U.S. Embassy, but have been beaten back by security forces, who have killed hundreds of demonstrators.

The militiamen and their supporters, however, were able to quickly enter the Green Zone and mass in front of the embassy, with little if any resistance from authorities.

By Wednesday morning, they had set up a small sit-in of their own, with around 50 tents set up between two main gates about 500 meters (yards) apart. Demonstrators set up a makeshift clinic and cooks with aprons reading Popular Mobilization Forces logistical support served meals out of giant pots. Mobile toilets were also set up in the area.

Vehicles belonging to the Popular Mobilization Forces, with government plates, were parked nearby, and the militiamen manned checkpoints where they searched all those arriving at the site of the demonstration.

Outside one of the gates, a Shiite cleric recited verses from the Muslim holy book, the Quran, through a loudspeaker. Another cleric led the protesters in midday prayers.

Demonstrators could be seen hurling rocks over the walls of the embassy compound, where U.S. troops responded by firing tear gas from the roofs of buildings. Iraqi security forces deployed nearby watched the standoff unfold without intervening.

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Associated Press writers Amir Vahdat in Tehran, Iran, Bassem Mroue in Beirut and Joseph Krauss in Ramallah, West Bank, contributed to this report.

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US troops fire tear gas at pro-Iran protesters in Iraq - The Associated Press

Over the New Year holiday,pro-Iran militiamensurrounded the United States embassy in Baghdad. Ultimately, and thankfully, the American personnel remained unscathed, but it was a further reminder of the political unrest that continues to dominate that country. It also reminds us of the potential disruption that more unrest in Iraq could impact global oil markets.

TOPSHOT - A handout picture received from the US embassy in Iraq on December 31, 2019, shows a US ... [+] army apache helicopter dropping flares over Baghdad's high-security Green Zone on December 31, 2019, after Iraqi supporters of pro-Iran factions breached the outer wall of the US embassy over weekend air strikes that killed pro-Iran fighters in western Iraq. - The US State Department said that embassy personnel are safe and there are no plans to evacuate, after Iraqi supporters of pro-Iran factions attacked the compound. It is the first time in years that protesters have been able to reach the building, sheltered behind a series of checkpoints in the high-security Green Zone. (Photo by - / US EMBASSY IN IRAQ / AFP) (Photo by -/US EMBASSY IN IRAQ/AFP via Getty Images)

In recent months, Iraq has experienced large-scale protests by citizens who oppose Iranian interference in their country. The country also saw themurderofhundredsof theseprotestors. Earlier this week, the U.S.struck targetsin Iraq and Syria that were linked to Iran-backed militias.

This political unrest brings with it a potential for a real disruption to the global energy markets. In 2018, Iraq produced more oil than all but four other countries. Though reliable and updated numbers are not yet available, its oil production increase in 2019 and it is probably now the fourth largest oil producer in the world. This past summer, it produced4.88million barrels per day. But just this past week, on December 28 and 29, protestors were able toshut downan oil field that produces 90,000 barrels per day.

Iraqi oil has been less than reliable on the global market forsome time. Until recently, ISIS controlled some of the countrys oil. In the last 17 years there were also disruptions due to the military engagements caused by the U.S. invasion, conflicts between the Iraqi government and the Kurdish authorities and efforts to rebuild the countrys oil infrastructure after Saddam Husseins regime and then war. In the 1990s, international sanctions and the United Nations Oil For Food program limited the sale of Iraqi oil. In the 1980s, Iraq engaged in an eight-year war with Iran that disrupted oil production and exports.

However, lately Iraq has been producing and exporting record amounts. It typicallyoverproducesits OPEC quota. If the situation in Iraq deteriorates further in 2020, we could see real disruptions to the oil market that last more than just a couple of days, which could scare the market.

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Unrest In Iraq Reminds Us Of Geopolitical Risks To Oil - Forbes

Iraqs Popular Mobilization Units (PMU) have become involved in an open confrontation with the Iraqi protesters who have been demonstrating since Oct. 1 and calling for major reforms. Over the last three months, the PMU have been accused of participating in a crackdown on protests.

On Jan. 5, Dhi Qar provincein southern Iraqwitnessed the killing of two protesters who were among others protesting a symbolic funeral procession held by a group of armed men forthe Islamic Revolutionary Guard Corps Quds Force Cmdr.Qasem Soleimani, who was assassinated at Baghdad International Airport Jan. 3.

When we refused the gunmen [entrance to]the protest square, they threatened to open fire at us. They fired live bullets at us in the skirmish with the protesters, a protester in Dhi Qar told Al-Monitor on condition of anonymity for fear of reprisal. In response to the shooting, as shown in video footage, the protesters burned the PMU headquarters in the province.

Dhi Qar incurred the most deathsin the war between the Islamic State and the PMU and Iraqi security forces. Also, the province had the biggest share of victims in the Camp Speicher massacre in June 2014, when IS killed 1,700 people.

On the same day of the armed attack against the protesters during the symbolic funeral for Soleimani, PMU supporters burned down protesters' tentsin Basra province, in the south, for the same reasons.

A YouTube account that seems to belong to a PMU member or a supporter havinga photo of Soleimani and Abu Mahdi al-Muhandisa top PMU leader who was killed in the same drone strike as Soleimanishared a video of the burning tents in Basra, saying it was punishment for protesters who celebrated the death of the two men.

The protesters objected to the funeral procession of Soleimani and Muhandis, which prompted the Hezbollah Brigades to fire live bullets at them and burn down their tents, killing one man and wounding another, Hussam al-Khamisi, a Basra activist told Al-Monitor.

Khamisi, who has been participating in Iraq's protests since 2015, believes thePMU will further crack down on protests in the coming days.

While the PMU have been widely accused of participating in the crackdown, a PMU source denied these claims in an interview with Al-Monitor.

Telegram channels close to the PMU have been sharing information within groups, which Al-Monitor was able to check, about the possibility of Iraqi protesters burning PMU headquarters in someprovinces. This could portend some major open confrontations between the armed PMU and the protesters.

The demonstrators in Baghdads Tahrir Square said they were innocent of the attack on the US Embassy Dec. 31, which seemed to have provoked the PMU, which accused the protesters of betraying their homeland.

Liqaa Makki, a researcher atAl-Jazeera Center for Studies, told Al-Monitor, What happened in Dhi Qar and Basra is an indication that the PMU are now ready to use their arms freely and without accountability,since there is no authority to deter themexcept formeager local influence.

The protesters are being accused of treason, which for the PMU is a valid excuse to attack them. I think the PMU will also take advantage of the tense situation with the United Statesto further suppress the protests, Makki added.

The US statements on the protests in Iraq are provocative for the PMU factions that claim Washington orchestrates the ongoing demonstrations.

David Schenker, assistant secretary of Near Eastern Affairs at the US State Department, also implicated PMU leadersin the killing of Iraqi protesters.

Aqeel Abbas, an assistant professor at the American University of Sulaimaniyah, told Al-Monitor, Some PMU leaders and members believe this would be the right time to squash the protests given the critical situation in the country. The protesters should hold their breath for a little longer to overcome this phase.

There is a real danger that the most radical PMU groups would seek to dismantle the demonstrations, Abbas added.

A video showed a member of the coordination committee of the protests in Karbala provinceaccusing PMU gunmen ofharassing and killing protesters in the last two days of December,calling on demonstrators to ready their sticks and rods to repel any attacks.

It appears this is a favorable opportunity for the PMU to crush the ongoingprotests, especially with the media blackout on the demonstrations after the attempt to storm the US Embassy and the death of Soleimani and Muhandis.

In sum, the accusations of treason against Iraqs protesters since the outbreak of the demonstrations are likely to serve as a valid religious and political justification to suppress them. This is true despite the fact that some PMU leaders have previously stated the protests were justifiable and understandable.

Some radical PMU groups, however, are openly opposed to the protests, which have seen 600 protesters killed and nearly 22,000 wounded over the past three months.

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Iraq Are Iraq's PMU militias planning to put an end to protests? - Al-Monitor

When the U.S. invaded Iraq in 2003, it was taking control of the most indebted nation in the world.

Why it matters: Iraq's debt at the time was an astonishing $130 billion, and the eradication of that debt was a rare example of international unity and cooperation in the interests of a debtor country.

The big picture: Iraq had very few debts before the Iran-Iraq war of 19801988. Western countries armed Iraq during that war, and accepted IOUs for their weapons despite knowing that Iraq was already insolvent.

After the war, the UN took the extraordinary step of immunizing all of Iraq's assets from attachment by creditors. That put Iraq in an extremely strong negotiating position, and ultimately the country managed to persuade creditors to accept a reduction of 80% in the value of their debts.

Where it stands: Iraq today may be facing political turmoil, but its sovereign finances are in good shape, with a low debt-to-GDP ratio, substantial foreign reserves, and a healthy fiscal surplus.

Go deeper: U.S. to send "additional forces" after embassy in Baghdad attacked by protesters

More:
Tracing Iraq's transformation from the most indebted country in the world in 2003 - Axios

Sen. Bernie Sanders (I-Vt.) escalated his offensive Monday on fellow 2020 candidate Joe Biden, going after the former vice president for his past positions on myriad issues, including the Iraq War.

Joe Biden voted and helped lead the effort for the war in Iraq, the most dangerous foreign policy blunder in the modern history of this country, Sanders told CNNs Anderson Cooper.

The remarks by Sanders, who prides himself on being among the few lawmakers who voted against invading Iraq, came just days after Biden falsely suggested again to voters that he opposed the war when it began in 2003.

The president then went ahead with Shock and Awe, and right after that and from the very moment he did that, right after that I opposed what he was doing and spoke to him, Biden told voters in Iowa on Saturday, referring to former President George W. Bush, according to CNN.

Biden has attempted several times to recharacterize his vote on Iraq in an effort to appeal to Democratic voters skeptical of his history of foreign policy decisions. While Monday was not the first time Sanders has attacked Biden for his stance on the now 17-year war on terrorism, the senator took it a notch higher by going after his rivals stances on several additional issues.

Joe Biden voted for the disastrous trade agreements like NAFTA and permanent normal trade relations with China, which cost us millions of jobs. You think thats going to play well in Michigan or Wisconsin or Pennsylvania? Sanders told Cooper. You know, Joe Biden has been on the floor of the Senate talking about the need to cut Social Security or Medicare or Medicaid. Joe Biden pushed a bankruptcy bill, which has caused enormous financial problems for working families.

The 2020 Democrats original positions on the Iraq War are considered especially important now that President Donald Trump is rapidly escalating tensions with Iran, a conflict that stems from the 2003 intervention in the Middle East. Many Americans fear another war after the Trump administration assassinated Irans Maj. Gen. Qassem Soleimani last week, a move that could further destabilize the region.

On Saturday, Sanders announced a measure he plans to introduce with Rep. Ro Khanna (D-Calif.) that would block any funding for a war with Iran that does not have congressional authorization.

All of that suffering, all of that debt, all of that huge expenditure of money for what? Sanders said at an Iowa town hall on Friday of the Iraq War. It gives me no pleasure to tell you that at this moment we face a similar crossroads fraught with danger. Once again, we must worry about unintended consequences and the impact of unilateral decision-making.

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Bernie Sanders Goes After Biden Over His Claims About Opposing The Iraq War - HuffPost