The allegations are contained in a confidential "field report" written by a British officer who served in Basra during one of the most dangerous periods of the conflict. The report, which has never been made public, shows the full level of Iran's involvement in the insurgency for the first time.
The document states that the Jaish al-Mahdi (JAM) – also known as the Mahdi Army – one of the most violent insurgent groups operating in Basra, used money from Iran to recruit and pay young unemployed men up to $300 (£150) a month to carry out attacks against the British. The findings have been passed to the highest levels in the military.
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