Since in OTL the USA would intervene against the Iranians if they could defeat the Iraqi ground forces, the PoD is both a different american approach in the Gulf and a different american president, someone isolationist in this case
So, in the scenario somwhere in 1985 the Iranians succesfully invade Iraq and Saddam flees outside, while Iran create a puppet kurdistan state and a shia dominated rump Iraq, what would happen after that?