BAGHDAD: Iran demands $1 trillion U.S. dollars in compensation from Iraq for the damage done to the country during the Gulf war, a local news agency quoted an Iranian lawmaker as saying.

“According to UN estimates, the Islamic Republic of Iran demands $1 trillion U.S. dollars in compensation from Iraq in compensation for the damage caused by the war,” said the head of the foreign relations committee in the Iranian Shura Council, Hassan Ibrahimi, according to the news agency.

In response to what the Iranian news agency described as “allegations of the Iranian seizure of an oil well in Iraq,” Ibrahimi said that his country “will never have a dispute with Iraq.”

“The issue will be resolved by means of diplomatic dialogue,” he added. The Iranian ambassador to Baghdad, Hassan Kazemi Qomi, had denied reports that Iranian soldiers seized an oil well in Missan.

During an emergency meeting on Friday, Iraq’s National Security Council considered an Iranian force’s incursion into an oilfield as “violation of the country’s sovereignty,” demanding “the immediate withdrawal and removal of the Iranian flag from the well tower in the field,” according to the Iraqi government’s official spokesman.

The spokesperson said 11 Iranian soldiers had taken control of the Fakka oilfield in a remote desert area of southeastern Iraq, in a “violation of Iraqi sovereignty.”

Iraq demanded an immediate withdrawal from well No. 4 and the Fakka oilfield, saying it was looking for a peaceful and diplomatic settlement to the issue.

Iraqi officials said the Iranian soldiers crossed into Iraqi territory on Friday and raised the Iranian flag at Fakka, whose ownership is disputed by Iran.