AP � Iraq is reducing visa charges for Iranian pilgrims who visit to mark a major religious occasion later this year.

The reduction will only apply to pilgrims of the �Arbaeen,� the anniversary of the passage of 40 days after the martyrdom of the deeply revered Shia Imam Hussein, the Prophet Muhammad�s grandson.

News of the reduction of the visa charges, which are normally $40, was posted on the government�s website Tuesday. It did not say how much the reduction will be.

The move followed this week�s cancellation by Iran of a visit by Iraq�s prime minister, who apparently angered Tehran by saying Iraq will heed the latest U.S. sanctions against Iran.

Haider al-Abadi sought to soften his stance Monday, saying Baghdad will only observe the ban on transactions in dollars.