Hi,
The Lightning War rule states that « Once per game, and prior to January 1941, all German land and air units may make an additional sequence of combat moves, combat (including blitz) and non-combat movement. The second round of attacks takes place immediately after the end of the first non-combat movement. Units with blitz may use this ability both rounds if possible ».
I would tend to say that no matter if the alignment of Iraq takes place after the first or second combat round these units were not yours during the first round of attack and so were not « German land units » for the purpose of the special ability.
A case could be made to the contrary, but it seems a bit OP to move these newly acquired units right away.
