Iraq has always been one of the most sensitive centers of competition between regional and global powers due to its privileged geopolitical location, its location at the heart of energy and transit hubs, and its access to strategic resources. After 2003, the country became more than ever an arena of geopolitical overlap, conflict, and interaction between multiple actors; competitions that not only shape the structure of Iraq’s domestic politics but also strongly influence its foreign policy orientations. The present study shows that Baghdad’s foreign behavior is shaped in a complex and interconnected multipolar field; this study, with an analytical-explanatory approach, examines the relative failure of the United States’ strategy in realizing the “Greater Middle East” plan in light of the interaction of rival powers, and shows that the presence and geopolitical influence of other powers in Iraq has effectively prevented the formation of unilateral American hegemony. The article also examines emerging trends in Iraq’s foreign policy in relation to regional and transregional cooperation structures, including the Shanghai Cooperation Organization, BRICS, and new economic pacts. The research findings indicate that the intensification of global geopolitical competition and the emergence of new power blocs have created new opportunities and challenges for Iraq, forcing the country to adopt a multi-pronged foreign policy based on intelligent balancing. Finally, the article predicts that the continuation of these competitions will redefine Iraq’s role and position in the future international order and could turn the country into one of the important geopolitical nodes in the Southwest Asia region.