Protesters stormed the South Oil Company headquarters in the city of Basra.
This comes as residents of Basra held demonstrations to protest the shortage of jobs, electricity, water and other basic services.
Iraqi police have used live ammunition to disperse the protesters, leaving one dead and three others wounded.
Commentators say Iran is attempting to mar the ongoing protests by inciting militias. The ultimate end of the Iranian regime, according to them, is to stir chaos in southern Iraq and disrupt oil transfers in the Gulf.