Iraq’s plan to tackle its persistent power shortages by importing gas from Turkmenistan through neighboring Iran has been blocked due to U.S. opposition.
The setback leaves Baghdad urgently seeking alternative solutions to stabilize electricity supply, News.Az reports, citing Reuters.
Oil-rich Iraq has struggled to provide its citizens with power since the 2003 U.S.-led invasion that toppled Saddam Hussein, forcing many to rely on expensive private generators, causing economic hardship and sparking social unrest.
Hussain Saad, a 43-year-old owner of a butcher shop in the Kasra neighbourhood of Baghdad, is struggling to protect his livelihood and keep his meat from spoiling in the scorching heat.
"This isn't just my suffering — it's the suffering of the entire Iraqi people," he said.
A deal first proposed in 2023 would have seen Turkmenistan export gas to Iraq through Iran, which lies between the two countries. Under the swap deal, Iran would receive the gas and supply it to Iraq, but this risked violating U.S. sanctions on Tehran - requiring Washington's approval.
That approval never came. U.S. President Trump's administration has doubled down on a "maximum pressure" campaign against Tehran.
Reuters spoke to four Iraqi officials and reviewed seven official documents to reveal how Baghdad had sought Washington's approval for months to let it import roughly 5 billion cubic metres (bcm) of Turkmen gas via Iran.
Iraq sought to import 5.025 bcm of Turkmen gas a year, facilitated via Iran's state-owned National Iranian Gas Company (NIGC), according to a draft contract of the swap deal seen by Reuters.
Iran would receive no money, but would get gas for its own needs amounting to no more than 23% of the overall daily volume coming from Turkmenistan, a document showed.
Baghdad also offered to allow a third-party international monitor to oversee the deal's compliance with U.S. sanctions and anti-money laundering rules, the same document showed.
But despite months of lobbying, U.S. objections ultimately scuppered the deal as Washington ramps up pressure on Iran over its nuclear plans.That has left Baghdad facing an increasingly difficult balancing act between its main allies in Washington and Tehran.
