Iran's ambassador to Iraq said his country is relocating its consulate in Basra, after demonstrators burned down the old one four days ago. Protests in the oil-rich city that began over failing services and contaminated drinking water have morphed into a condemnation of Iraq's entire political class, as well as of Iran, which holds a large sway over politics. Angry demonstrators torched nearly every government building in Basra last week as well as the offices of several Iran-backed militias that operate in the city.

Ambassador Iraj Masjedi on Tuesday said the old consular building was "completely burned." It was occupied and torched on Friday. Protesters returned to the streets Monday night to chant against Prime Minister Haidar al-Abadi and Basra Governor Asaad al-Aidani.

Neighboring Iran is a key power broker in Iraq and many of the militias and political parties whose offices were torched in last week's unrest are known to be close to the Islamic republic.

Basra has been at the epicenter of protests that broke out in July in the southern province before spreading to other parts of the country, as demonstrators demanded jobs and condemned corruption among Iraqi officials. Twelve protesters have been killed in the ensuing clashes, with rights groups accusing security forces of using excessive force. Officials have blamed the deaths and violence on "vandals" who infiltrated the demonstrators.