Iranian President Masoud Pezeshkian arrived in neighboring Iraq on Wednesday to mark his first foreign visit since assuming office.

The choice of destination signals the Iranian government's intention to strengthen ties with a strategic ally of both Tehran and Washington as regional tensions rise.

Pezeshkian, a relative moderate who was elected in July, met Iraqi Prime Minister Mohammed S. al-Sudani at the start of his three-day visit that Baghdad said would include the signing of a number of agreements and discussion of the Gaza war and the situation in the Middle East.

Iraq hosts several Iran-aligned parties and armed groups, as Tehran has steadily increased its sway in the major oil producer since a U.S.-led invasion toppled Saddam Hussein in 2003.

A rare partner of both the United States and Iran, Iraq hosts 2,500 U.S. troops and has Iran-backed armed factions linked to its security forces. It has suffered escalating tit-for-tat attacks since Israel launched its genocidal war on Gaza last October.

"We are planning to sign several agreements," Iran's state media quoted Pezeshkian as saying before his departure for Iraq. On his arrival, he was greeted by Sudani at the airport, where they reviewed a guard of honor.

The Iraqi prime minister's media office said in a statement that the two countries would sign memoranda of understanding (MoUs) in different fields including trade, agriculture and communications.

Iranian Foreign Minister Abbas Araqchi said Wednesday that around 15 MoUs would be signed, Iranian state media reported.

"We have several cooperation areas, including political, regional ... and security issues," Araqchi said.

Pezeshkian visited a monument for Iranian Major-General Qassem Soleimani who was killed, in a U.S. drone attack in 2020 in Iraq, Iranian state media reported.

Ties with US

The United States and Iran came close to a full-blown conflict in 2020 after the killing of top Iranian Gen. Qassem Soleimani in a U.S. drone attack at Baghdad airport and Tehran's retaliation by attacking U.S. bases in Iraq.

The U.S. and Iraq have reached an understanding on plans for the withdrawal of U.S.-led coalition forces from Iraq, say sources familiar with the matter.

Iran-aligned armed groups in Iraq have attacked U.S. troops in the Middle East since the Gaza war began.

State media have said Pezeshkian also plans to visit northern Iraq, which is under the control of the Kurdistan Regional Government (KRG) and a region where Iran has carried out strikes in the past.

Baghdad has tried to tackle Iranian concerns over regional separatist groups, moving to relocate some members in a 2023 security pact with Tehran.