BAGHDAD — Nervously watching Israel's destructive campaigns in Gaza and Lebanon, Iraq is working to avoid being drawn into the growing regional conflict as Iran-backed armed groups launch attacks on Israel from Iraqi soil, sources familiar with the matter say.

Two decades after the US-led invasion that toppled Saddam Hussein, Iraq is experiencing relative stability with high revenue from oil sales funding a service-based agenda that has turned much of the country into a construction site.

Iraq does not have diplomatic relations with Israel and Prime Minister Mohammed Shia al-Sudani's government is wary of regional conflicts that could affect its delicate balancing act between Washington and Tehran, both states it is allied with.

Axios reported late on Thursday that Israeli intelligence suggests Iran is preparing to attack Israel from Iraqi territory in the coming days, possibly before the US presidential election on Nov 5, citing two unidentified Israeli sources.

There was no immediate Iraqi comment.

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