Iran can no longer supply neighbouring Iraq with gas

Iraq's already fragile power supply is expected to worsen significantly following the Ministry of Electricity's announcement on Tuesday that Iran has halted gas deliveries.

Iran has halted gas deliveries to Iraq, the Ministry of Electricity in Baghdad announced on Tuesday, a move expected to significantly worsen the country's already fragile power supply.

According to the Iraqi state news agency INA, this means that the country's grid will lose 4,000 to 4,500 megawatts of generation capacity.

Iranian authorities informed the ministry in Baghdad of the decision in a written notice, citing "unforeseeable circumstances" without providing further details.

The Iraqi government said it consulted with the oil ministry to implement "alternative measures" to mitigate disruptions at power plants.

Imports cover about one-third of Iraq's nationwide electricity consumption.

In recent years, Tehran has repeatedly reduced gas deliveries to meet rising domestic demand. Most of Iran's oil exports are currently shipped to China.

Despite holding some of the world's largest oil and gas reserves, Iran is grappling with a severe energy crisis.

Observers attribute the shortages to international sanctions, underinvestment in infrastructure, corruption and long-standing mismanagement.

Iraq, meanwhile, continues to suffer from electricity shortages after decades of war and conflict, with power cuts frequently occurring, especially in the summer heat.

In 2019, as in previous years, this led to mass protests in which hundreds of people were killed and thousands injured.

The suspension of Iranian gas supplies has raised concerns that similar unrest could erupt again if power shortages worsen in the coming weeks.

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