Washington Allows Iraq to Pay for Iranian Gas through 3rd Party

People fish at the Shatt al-Arab stream in the city of Basra, southern Iraq. (AFP)
People fish at the Shatt al-Arab stream in the city of Basra, southern Iraq. (AFP)
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Washington Allows Iraq to Pay for Iranian Gas through 3rd Party

People fish at the Shatt al-Arab stream in the city of Basra, southern Iraq. (AFP)
People fish at the Shatt al-Arab stream in the city of Basra, southern Iraq. (AFP)

The United States on Tuesday moved to let Iraq pay Iran for electricity via non-Iraqi banks, a US official said, a step Washington hopes may keep Tehran from forcing unpopular power cuts during the Iraqi summer, according to Reuters.

Secretary of State Antony Blinken signed a 120-day national security waiver allowing Iraq - heavily dependent on Iranian electricity - to deposit such payments into non-Iraqi banks in third countries instead of into restricted accounts in Iraq, said the official who spoke on condition of anonymity.

The US had granted previous governments since the government of Haider al-Abadi a period of 120 days to pay for its purchases from Iran, including gas, in US dollars. While Iraq continues to heavily depend on imported Iranian gas, Washington permitted Iraq to pay the Iranian debts under the governments of Adel Abdul Mahdi and Mustafa al-Kadhimi.

The summer temperature and the Iranian and American procedures have worsened the condition in Iraq. Iran halted its gas supply to Iraq in the peak of heat, meanwhile, Iraqis complained about the dual US-Iranian sanction on Iraq.

Iran had halted its gas supply to Iraq because the latter didn’t pay its debts. When Iraqi Prime Minister Mohammed Shia al-Sudani announced the oil in return for the gas policy, Iran resumed gas supply that was halted for technical and not financial reasons, according to an Iranian official.

The US decision serves the interest of Iraq and Iran as well. No official approval was announced but experts and observers said that the US is likely to provide new support to the government of Sudani.

In this context, a professor of Mass Communication at the Iraqi University, Dr. Fadel Al Badrani, said Sudani has probably taken US approval before trading oil for Iranian gas to maintain electricity.

It is a temporary step to avoid a crisis, proving the US support to the government of Sudani, according to Badrani.

He added that the US exemption to Iraq for 120 days represents the support to Baghdad to overcome the electricity crisis during summer, but the condition to transfer funds to non-Iraqi banks proves that Washington sticks to its firm stance toward Tehran.

Iraqi Electricity Minister Ziad Ali Fadel confirmed on Wednesday that the ministry has not received any official directive on allowing Iraq to pay dues for Iranian gas.

"The issue of the United States allowing Iraq to pay dues for Iranian gas for 120 days was published in the media only and we have not received anything official," Fadel told the Iraqi News Agency (INA).

"There are reserved amounts belonging to the Iranian side and they are paid either with money or through oil," he added.

"If the United States gives consent to the payment of dues, it is possible to spend part of it money and the other part fuel," the minister said.



‘No One Dares’ … First Palestinian Response to Israeli Plan to Separate Hebron from PA

Israeli security forces stand guard as Israeli settlers tour in the Palestinian side of the old city and market of Hebron in the occupied West Bank on July 5, 2025. (Photo by HAZEM BADER / AFP)
Israeli security forces stand guard as Israeli settlers tour in the Palestinian side of the old city and market of Hebron in the occupied West Bank on July 5, 2025. (Photo by HAZEM BADER / AFP)
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‘No One Dares’ … First Palestinian Response to Israeli Plan to Separate Hebron from PA

Israeli security forces stand guard as Israeli settlers tour in the Palestinian side of the old city and market of Hebron in the occupied West Bank on July 5, 2025. (Photo by HAZEM BADER / AFP)
Israeli security forces stand guard as Israeli settlers tour in the Palestinian side of the old city and market of Hebron in the occupied West Bank on July 5, 2025. (Photo by HAZEM BADER / AFP)

A report published by The Wall Street Journal, and promoted by Israeli media on Sunday, has renewed focus on an Israeli plan dating back more than 60 years aimed at pushing for the creation of “emirates” or entities independent from the Palestinian Authority (PA).

The report focused on the Palestinian city of Hebron, and cited what it claimed were “21 tribal elders from Hebron,” who allegedly sent a letter in Hebrew to Israeli Prime Minister Benjamin Netanyahu, calling for negotiations with them to join the Abraham Accords and consequently abandon the “two-state solution,” which Palestinians rely on to establish their state.

However, a Palestinian security source, in remarks to Asharq Al-Awsat, said: “What is happening is yet another Israeli attempt to weaken the Palestinian Authority.”

“This is a failed plan,” he said: “No one here would dare take this step and say: I am the spy... I am the alternative to the Authority ... Those who tried that are known and represent no one.”

Reportedly, the elders included a detailed proposed timetable for talks to join the Abraham Accords and for “a fair and decent arrangement that would replace the Oslo Accords, which only brought damage, death, economic disaster and destruction.”

According to The Wall Street Journal, the initiative was helmed by Wadee al-Jaabari, who local city residents and its political leadership claim is unknown to them, and backed by "four other leading Hebron sheikhs.”

Palestinian city residents, including Jaabari's extended family members, condemned the proposal, saying that its authors do not represent them.

Israeli sources said that Economy Minister Nir Barkat stands behind the letter, which was allegedly sent to him. Barkat met at his home with al-Jaabari and the other sheikhs; he has held more than 12 meetings with them since February, The Wall Street Journal said. They asked him to forward the letter to Netanyahu and are now waiting for his response.

The sheikhs reportedly proposed that Israel grant work permits to 1,000 workers from Hebron on a trial basis, and then extend this to another 5,000.

According to Maariv newspaper, the Israeli government is “seeking to promote this plan to destroy the Palestinian Authority and the establishment of a Palestinian state.”