Abdullah Marzouki fired Bahrain in front as early as the 11th minute only for Hawar Mohamed to level for Iraq 3 minutes later.
The draw maintained Iraq’s place atop Group B with 4 points while Bahrain lie last with just one point.
Iraq need only one point from their match against Saudi Arabia to clinch their semi-final berth.
Earlier in the day, Saudi Arabia held title holders Qatar to a 1-1 draw to edge closer to the second round.
Qatar took the lead through Ali Nasser in the 10th minute but Malik Al-Housawi grabbed a second-half equalizer.
Qatar are facing early elimination from the 18th Gulf Cup.
The defending champions will be eliminated if Iraq and Saudi Arabia, who are second on goal difference, draw on Tuesday.
Qatar also face Bahrain on the same day.