AhlulBayt News Agency: The United States has blocked a proposed energy deal that aimed to help Iraq address its persistent electricity shortages by importing natural gas from Turkmenistan through Iran, citing sanctions on Tehran.
According to a Reuters report based on four Iraqi officials and seven documents, Iraq was unable to obtain U.S. approval for the gas import plan, which was necessary to avoid breaching American sanctions against Iran.
The draft agreement, first introduced in 2023, outlined Iraq’s intention to import over 5 billion cubic meters of Turkmen gas annually via Iran’s National Iranian Gas Company (NIGC).
The contract specified that Iran would not receive payment but would retain up to 23% of the daily gas volume for its domestic use.
Despite Baghdad’s efforts to gain U.S. consent—including offering international oversight to ensure compliance—Washington’s objections ultimately halted the deal as part of its “maximum pressure” policy on Iran.
Adel Karim, an adviser on electricity to Iraq’s prime minister, told Reuters that moving forward with the deal could expose Iraqi banks to U.S. sanctions, leading to the contract’s suspension.
This disruption occurred even though the U.S. had claimed to be assisting Iraq with its energy challenges.
Since the 2003 U.S.-led invasion, Iraq has faced chronic power shortages, forcing citizens to rely on costly private generators that have strained household budgets and fueled public discontent.
Hussain Saad, a butcher in Baghdad, expressed frustration over the inability to preserve his products in the extreme heat, saying the crisis affects all Iraqis.
In March, the administration of President Donald Trump declined to renew a sanctions waiver that had previously allowed Iraq to pay for electricity imported from Iran, further jeopardizing Iraq’s energy supply.
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