In 1978, Baghdad hosted an Arab League summit that condemned and ostracized Egypt for accepting the Camp David accords.
However, Egypt's strong material and diplomatic support for Iraq in its war with Iran led to warmer relations and numerous contacts between senior officials, despite the continued absence of ambassadorial-level representation.
Relations have steadily improved in recent years, and Egypt is now one of Iraq's main trade partners (formerly under the Oil-for-Food Programme).
His anti-British, anti-colonial stance worried the British, who still had troops based in the Suez canal, as well friendly governments in the region, such as with then monarchy of Iraq.
[4] France and Israel, who were annoyed with Nasser because of his support for the Algerians and Palestinians, colluded with Britain to invade Egypt, triggering the Suez Crisis.
The Hashemite dynasty, who were ruling both Jordan and Iraq, decided to unite their kingdoms to form Arab Federation, to counter Nasser's influence in the region.
Iraqi Prime minister Abd al-Rahman al-Bazzaz led this transition; Iraq adopted the Egyptian coat of arms eagle and the Egyptian national anthem and adopted the UAR flag, but with three stars, to represent Iraq's desire to join the union.
Syrian analyst Sami Moubayed called Rahman Arif "the weakest president ever to rule Iraq since the officers came to power in 1958 - a harmless (leader) who tried to befriend everybody, Nasserist Egypt, Ba'athist Syria, the United States and the Soviet Union".
Nasserists still dominated the early Sadat era, and pan-Arabist plans were still organized between Egypt and other Arab nations.
Egypt-Libyan relations soured after Libya wasn't invited to participate in the planning of the war and Egypt thwarted a Libyan attempt to blow up a ship carrying the wife of Shimon Peres.
Under Mubarak, Egyptian foreign relations were a realist compromise between Nasser's pro-Arab anti-West policies and Sadat's pro-West strategy.
During this year, Egypt and Iraq, as well as Jordan and North Yemen established the Arab Cooperation Council (ACC), an organization designated to fostering closer economic ties with these governments.
[23][24] Though Mubarak wished for a peaceful diplomatic solution, Egypt would join the Arab coalition, and would commit 35,000 troops in the Gulf War, assisting the Iraqi retreat from Kuwait.
While Iraq was sanctioned by the US and increasingly isolated from both the Arab world, Egypt enjoyed tighter integration with the West and Gulf States.
[29] However, Mubarak was personally against the 2003 invasion of Iraq, saying that it would cause "100 Bin Ladens", and that removing Saddam would only strength Iranian power in the region.
Though the First Gulf War ruptured diplomatic relations between Iraq and Egypt, but there have been improvements in recent years with many senior officials from both countries exchanging visits.
The last meeting was in June 2021 when Egypt's President Abdel Fattah al-Sisi, Iraqi Prime Minister Mustafa Al-Kadhimi together with Jordan's King Abdullah met in Baghdad.
It also aimed at forging an alliance between the Arab nations to solve Palestinian issues, combat terrorism, and reinforce trading.
In recent years, Iraq had signed cooperation deals in the energy, health, and education sectors with both countries.