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Tehran Receives $1.6 Bln in Gas Debt from Iraq

(Asharq Al-Awsat)
(Asharq Al-Awsat)
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Tehran Receives $1.6 Bln in Gas Debt from Iraq

(Asharq Al-Awsat)
(Asharq Al-Awsat)

Iran said on Thursday it has received $1.6 billion from Iraq to settle part of the debts it has sought from its neighbor since 2020 for the supply of gas.

“In light of the active energy diplomacy, and after months of negotiations, $1.6 billion in arrears... for gas exports to Iraq have been received,” Iranian Oil Minister Javad Owji tweeted, Tasnim news agency reported.

“Since the beginning of the year, compared to 2021, the country's gas export volume has increased by 25% and the collection of revenues has also increased by 90%,” Owji added. The Iranian new year begins on March 21.

Iraq’s Electricity Ministry spokesman Ahmed Moussa said the government has started paying off its debts for gas imports from Iran by borrowing from the Trade Bank of Iraq, adding that the Ministry of Finance deposited the money in the Credit Fund.

“We are still relying on Emergency Support Law to repay our dues,” Tasnim quoted Moussa as saying.

Baghdad had been scheduled to pay that amount to Tehran before June.

The debt dates back to 2020, but payment was stalled amid sanctions against Iran by the United States.

Iran’s deputy oil minister, Majid Chegeni, said last month that an agreement had been reached with Iraq for it to pay $1.6 billion in arrears by the end of May.

Despite its immense oil and gas reserves, Iraq remains dependent on imports to meet energy needs.

Iran provides a third of Iraq’s gas and electricity needs, but supplies are regularly cut or reduced, aggravating shortages caused by daily load shedding.

Separately, Iranian state news agency IRNA reported on Thursday that Iranian authorities have seized a vessel carrying 90,000 liters of smuggled fuel in the waters around Kish Island in the Gulf.

The captain and five other crew members were issued with criminal warrants and have been detained, IRNA added.

Iran, which has some of the world’s cheapest fuel prices due to heavy subsidies and the fall of its currency, has been fighting rampant fuel smuggling by land to neighboring states and by sea to Gulf Arab countries.

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World

US Military Expands Iran Blockade to Include Contraband Shipments

FILE PHOTO: Two F/A-18 Super Hornets launch from the flight deck of the US Navy Nimitz-class aircraft carrier USS Abraham Lincoln in support of the Operation Epic Fury attack on Iran from an undisclosed location March 3, 2026. US Navy/Handout via REUTERS
FILE PHOTO: Two F/A-18 Super Hornets launch from the flight deck of the US Navy Nimitz-class aircraft carrier USS Abraham Lincoln in support of the Operation Epic Fury attack on Iran from an undisclosed location March 3, 2026. US Navy/Handout via REUTERS
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US Military Expands Iran Blockade to Include Contraband Shipments

FILE PHOTO: Two F/A-18 Super Hornets launch from the flight deck of the US Navy Nimitz-class aircraft carrier USS Abraham Lincoln in support of the Operation Epic Fury attack on Iran from an undisclosed location March 3, 2026. US Navy/Handout via REUTERS
FILE PHOTO: Two F/A-18 Super Hornets launch from the flight deck of the US Navy Nimitz-class aircraft carrier USS Abraham Lincoln in support of the Operation Epic Fury attack on Iran from an undisclosed location March 3, 2026. US Navy/Handout via REUTERS

The US Navy said on Thursday the military had expanded a maritime blockade on Iran to include “contraband” shipments, adding that any vessel suspected of heading to Iranian territory would be subject to verification and inspection.

“These vessels, regardless of their location, are subject to boarding, inspection and seizure of cargo,” the Navy said in a statement updated after the blockade was imposed on Monday, according to Reuters.

Contraband includes weapons, weapons systems, ammunition, nuclear materials, crude oil and refined petroleum products, as well as iron, steel and aluminum.

As diplomatic activity intensifies, signals remain mixed over the course of US-Iran talks. A date for a second round of negotiations has yet to be set, with disagreements persisting over the nuclear file and sensitive issues related to highly enriched uranium and the duration of restrictions on Iran’s nuclear program.

World

IEA Chief Says Europe Has 'Maybe 6 Weeks or So' of Jet Fuel Left

Aircraft pass behind kerosene storage facilities at Liege Airport in Liege, Belgium, 16 April 2026. EPA/Olivier Hoslet
Aircraft pass behind kerosene storage facilities at Liege Airport in Liege, Belgium, 16 April 2026. EPA/Olivier Hoslet
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IEA Chief Says Europe Has 'Maybe 6 Weeks or So' of Jet Fuel Left

Aircraft pass behind kerosene storage facilities at Liege Airport in Liege, Belgium, 16 April 2026. EPA/Olivier Hoslet
Aircraft pass behind kerosene storage facilities at Liege Airport in Liege, Belgium, 16 April 2026. EPA/Olivier Hoslet

Europe has “maybe six weeks or so (of) jet fuel left,” the head of the International Energy Agency said Thursday in a wide-ranging Associated Press interview, warning of possible flight cancellations “soon” if oil supplies remain blocked by the Iran war.
IEA Executive Director Fatih Birol painted a sobering picture of the global repercussions of what he called “the largest energy crisis we have ever faced,” stemming from the pinch-off of oil, gas and other vital supplies through the Strait of Hormuz.
“In the past there was a group called ‘Dire Straits.’ It’s a dire strait now, and it is going to have major implications for the global economy. And the longer it goes, the worse it will be for the economic growth and inflation around the world,” he said.
The impact will be “higher petrol (gasoline) prices, higher gas prices, high electricity prices,” Birol told the AP, speaking in his Paris office looking out over the Eiffel Tower.
No country is immune Economic pain will be felt unevenly and "the countries who will suffer the most will not be those whose voice are heard a lot. It will be mainly the developing countries. Poorer countries in Asia, in Africa and in Latin America,” said the Turkish economist and energy expert who has led the IEA since 2015.
But without a settlement of the Iran war that permanently reopens the Strait of Hormuz, “Everybody is going to suffer,” he added.
“Some countries may be richer than the others. Some countries may have more energy than the others, but no country, no country is immune to this crisis," he said.
Without a reopening of the waterway, some oil products may dry up, he warned.
In Europe, “I can tell you soon we will hear the news that some of the flights from city A to city B might be canceled as a result of lack of jet fuel," he said.
Hormuz tolls a risk for the future Birol spoke out against the so-called “toll booth” system that Iran has applied to some ships, letting them travel through the strait for a fee. He said allowing that to become more permanent would run the risk of setting a precedent that could then be applied to other waterways, including the vital Malacca Strait in Asia.
“If we change it once, it may be difficult to get it back,” he said. “It will be difficult to have a toll system here, applied here, but not there.”
“I would like to see that the oil flows unconditionally from the point A to point B,” he said.
Even with a peace deal, strikes on energy facilities means it could be many months before pre-war production levels are restored, he said.
“Over 80 key assets in the region have been damaged. And out of these 80, more than one third are severely or very severely damaged,” he said.
“It will be extremely optimistic to believe that it will very quick," Birol said. “It will take gradually, gradually, up to two years to come back where we were before the war.”

World

EU, NATO to Work to Strengthen Relationship, Von der Leyen Says 

FILE PHOTO: A NATO flag flutters at the Tapa military base, Estonia April 30, 2023. REUTERS/Ints Kalnins/File Photo
FILE PHOTO: A NATO flag flutters at the Tapa military base, Estonia April 30, 2023. REUTERS/Ints Kalnins/File Photo
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EU, NATO to Work to Strengthen Relationship, Von der Leyen Says 

FILE PHOTO: A NATO flag flutters at the Tapa military base, Estonia April 30, 2023. REUTERS/Ints Kalnins/File Photo
FILE PHOTO: A NATO flag flutters at the Tapa military base, Estonia April 30, 2023. REUTERS/Ints Kalnins/File Photo

European Commission President Ursula von der Leyen said on Thursday that she agreed with NATO Secretary General Mark Rutte to work in the coming weeks to strengthen the European Union's relationship with the military alliance.

"We discussed the upcoming NATO Summit and how we can upscale defense industrial output in Europe," von der Leyen said in a post on social media platform X after meeting Rutte in Brussels, Reuters reported.

"We need to invest more, to produce more and to do both faster. With the rise in global security threats, we agreed to work closely together in the next weeks to strengthen the EU-NATO relationship and prepare a successful Summit in Ankara," she added.

Rutte said in a post about his discussion with von der Leyen that "a stronger Europe means a stronger NATO".