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.



Lebanon’s Foreign Minister to Asharq Al-Awsat: Aid and Reconstruction Tied to State Control over Arms

Lebanon’s Foreign Minister Youssef Rajji (Asharq Al-Awsat)
Lebanon’s Foreign Minister Youssef Rajji (Asharq Al-Awsat)
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Lebanon’s Foreign Minister to Asharq Al-Awsat: Aid and Reconstruction Tied to State Control over Arms

Lebanon’s Foreign Minister Youssef Rajji (Asharq Al-Awsat)
Lebanon’s Foreign Minister Youssef Rajji (Asharq Al-Awsat)

Lebanon’s Foreign Minister, Youssef Rajji, said that the Lebanese government has been explicitly informed that there would be no international aid or reconstruction support unless all weapons, both north and south of the Litani River, are brought under the exclusive control of the Lebanese state.

Rajji stated that this message was clearly communicated by US envoy Morgan Ortagus during her recent visit to Beirut, where she met with a number of Lebanese officials.

“We were told clearly that international reconstruction and aid are conditional upon state control over all weapons and full sovereignty over Lebanese territory—not only south of the Litani, but across the entire country,” Rajji said, in an interview with Asharq Al-Awsat.

According to the minister, Ortagus conveyed that the US sees a current “window of opportunity” for Lebanon. The American administration is reportedly willing to support the country’s efforts to liberate its occupied territories, rebuild its economy, and resume development. However, this support is tied to key demands—particularly economic reforms and exclusive state control over arms.

“These are not just American demands, but ones echoed by the international community, Arab and Gulf countries, and even many Lebanese,” Rajji remarked.

He clarified that Ortagus did not present a specific timeline for disarmament but urged that it happen “as soon as possible.” While she acknowledged that some progress had been made, she emphasized that more significant and faster steps are required.

On how Lebanon plans to achieve the objective of exclusive arms control, Rajji said: “There is a general principle that the state does not negotiate its internal sovereignty. Therefore, the government must take a clear stance and define a mechanism to ensure that weapons are solely in the hands of the Lebanese state.”

Negotiation Committees with Israel

Regarding proposed negotiations with Israel, Rajji said both the Americans and Israelis have been pushing for the establishment of three committees to discuss five occupied points, prisoner issues, and disputed border zones.

“We made it clear that we are not open to discussions on the first two. Lebanon is not occupying Israeli land nor holding any Israeli prisoners. Israel must withdraw unconditionally from the occupied areas and release the prisoners without negotiation,” he stated. “What we are open to is technical negotiations around border demarcation, which is a complex and specialized issue.”

He noted that while there was a previous idea to form civilian committees for these issues, the matter was not reviewed during Ortagus’ latest visit.

Diplomatic Challenges and National Sovereignty

Rajji emphasized that Lebanon’s diplomatic efforts to regain its occupied lands are ongoing.

“We are asking the international community to pressure Israel to withdraw from Lebanese territory. That would eliminate any justification for Hezbollah to retain its weapons and bolster the Lebanese state’s authority,” he told Asharq Al-Awsat.

However, he acknowledged Lebanon’s limitations. “We have no military or economic power. All we can rely on is diplomacy and the goodwill of our allies,” he emphasized.

On Palestinian Arms

Rajji expressed surprise at the argument that Hezbollah’s disarmament should follow the removal of Palestinian weapons from within and outside the refugee camps.

“What do the two have to do with each other?” he asked. “Palestinian weapons must certainly be handed over—but Hezbollah’s arms were not meant to counter Palestinian factions. We must focus on ensuring that the Lebanese Army is the sole legitimate armed force that protects all Lebanese.”

Economic Reforms

Commenting on the economic crisis, Rajji praised the performance of Prime Minister Nawaf Salam’s government: “They are doing excellent work under very difficult conditions. But this crisis is deep and can’t be solved in just a few weeks. The international community understands that but insists the time to act is now.”

Visit to Syria

Rajji is scheduled to join Salam next week on an official visit to Syria to resolve several pending issues. He expressed optimism about the Syrian leadership’s current stance, saying: “For the first time since our independence, a Syrian regime has clearly stated it respects Lebanon’s sovereignty and will not interfere in our internal affairs.”

The visit will also address the Syrian refugee crisis, which Rajji described as Lebanon’s top national priority.

“Lebanon can no longer bear the demographic, social, and economic strain. We are urging the international community to redirect aid to refugees inside Syria, not in Lebanon, and to support reconstruction efforts in Syria to encourage their return,” he underlined.

The minister added that discussions will include the eastern border issue and the fate of missing Lebanese in Syria. “We want to know what happened—how they were killed, where they are buried—so their families can find closure.”

Lebanese-Gulf Relations

On Lebanon’s relationship with Gulf countries, particularly Saudi Arabia, Rajji acknowledged past failures. However, he pointed to signs of improvement, especially following President Joseph Aoun’s and Prime Minister Salam’s recent visits to Saudi Arabia.

He stated: “The official Lebanese position did not align with Lebanon’s longstanding tradition of excellent relations with the Gulf states. Today, however, these ties have begun to return to their historically strong footing — the clearest evidence of this being the highly significant visit made by President General Joseph Aoun to the Kingdom, at the invitation of Crown Prince Mohammed bin Salman.”