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.



Iranian FM from Beirut: We Respect Lebanon’s Internal Affairs

Lebanese Foreign Minister Youssef Rajji, left, receives his Iranian counterpart Abbas Araghchi, center, in Beirut, Lebanon, Tuesday, June 3, 2025. (AP Photo/Bilal Hussein)
Lebanese Foreign Minister Youssef Rajji, left, receives his Iranian counterpart Abbas Araghchi, center, in Beirut, Lebanon, Tuesday, June 3, 2025. (AP Photo/Bilal Hussein)
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Iranian FM from Beirut: We Respect Lebanon’s Internal Affairs

Lebanese Foreign Minister Youssef Rajji, left, receives his Iranian counterpart Abbas Araghchi, center, in Beirut, Lebanon, Tuesday, June 3, 2025. (AP Photo/Bilal Hussein)
Lebanese Foreign Minister Youssef Rajji, left, receives his Iranian counterpart Abbas Araghchi, center, in Beirut, Lebanon, Tuesday, June 3, 2025. (AP Photo/Bilal Hussein)

Iranian Foreign Minister Abbas Araghchi said Tuesday that considering the regional developments, Iran is keen on opening a new chapter in its relations with Lebanon, assuring that his country respects Lebanon’s internal matters and does not meddle in them.

Araghchi, who arrived on Tuesday in Beirut coming from Egypt where he convened with senior officials, met with his Lebanese counterpart Youssef Rajji at the foreign ministry’s headquarters in Downtown Beirut.

Araghchi said he has meetings scheduled with Lebanese President Jospeh Aoun, PM Nawaf Salam and his Lebanese counterpart.

“My trip to Lebanon comes as part of my tour in the region”, the state-run National News Agency quoted Araghchi as saying after he arrived at the airport.

“We respect Lebanon’s internal matters; we do not interfere in them. We also support Lebanon’s sovereignty during difficult times just like we did before”, he stated, noting that Iran attaches great importance to Lebanon’s independence, sovereignty and unity.

“I hope there would be a new leaf of relations with Lebanon based on mutual respect”, he added.

A Visit with Political Goals

According to sources who spoke to Asharq al-Awsat on condition of anonymity, the Iranian diplomat’s visit has political goals as it coincides with a new round of US-Iran nuclear talks that reports say still faces hurdles amid Tehran’s insistence that they are strictly for peaceful purposes.

The visit was not coordinated in advance with the Lebanese state but came at the Iranian minister’s request, the source added, noting that Araghchi seeks to meet senior Lebanese officials to discuss matters of key importance for his country.