Iraq Extends Lebanon Fuel Deal for One Year

A dusk aerial view of cars driving by the devastated Port of Beirut, in darkness during a power outage. (AFP)
A dusk aerial view of cars driving by the devastated Port of Beirut, in darkness during a power outage. (AFP)
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Iraq Extends Lebanon Fuel Deal for One Year

A dusk aerial view of cars driving by the devastated Port of Beirut, in darkness during a power outage. (AFP)
A dusk aerial view of cars driving by the devastated Port of Beirut, in darkness during a power outage. (AFP)

Iraq's government has agreed to continue supplying Lebanon's electricity company with heavy fuel oil for another year, Lebanon's caretaker prime minister said on Thursday, alleviating pressure on Lebanon's struggling power grid.

Najib Mikati said he had made the request to Iraq's Prime Minister Mustafa al-Kadhimi, who agreed to extend the same terms of the agreement signed last year.

In July 2021, Iraq offered the cash-strapped Lebanese government 1 million tons of heavy fuel oil a year in exchange for services including health care for Iraqi citizens.

The deal was meant to alleviate Lebanon's acute power shortage, which last summer reached crisis levels when the government was unable to subsidize fuel imports.

Lebanon subsequently removed those subsidies and domestic fuel prices skyrocketed. Russia's invasion of Ukraine then further bumped up international prices this year.

With the government unable to provide fuel to public power plants, most homes in the country have been left without state-provided electricity for around 22 hours every day.



Aoun Leading Efforts to Avert Shiite Boycott of New Lebanese Govt

A handout photo made available by the Lebanese Presidency Press Office shows Lebanese President Joseph Aoun (C) attending a meeting with Lebanese parliament Speaker Nabih Berri (L) and Prime Minister-designate Nawaf Salam at the Presidential Palace in Baabda, Lebanon, 14 January 2025. (Lebanese Presidency Press Office)
A handout photo made available by the Lebanese Presidency Press Office shows Lebanese President Joseph Aoun (C) attending a meeting with Lebanese parliament Speaker Nabih Berri (L) and Prime Minister-designate Nawaf Salam at the Presidential Palace in Baabda, Lebanon, 14 January 2025. (Lebanese Presidency Press Office)
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Aoun Leading Efforts to Avert Shiite Boycott of New Lebanese Govt

A handout photo made available by the Lebanese Presidency Press Office shows Lebanese President Joseph Aoun (C) attending a meeting with Lebanese parliament Speaker Nabih Berri (L) and Prime Minister-designate Nawaf Salam at the Presidential Palace in Baabda, Lebanon, 14 January 2025. (Lebanese Presidency Press Office)
A handout photo made available by the Lebanese Presidency Press Office shows Lebanese President Joseph Aoun (C) attending a meeting with Lebanese parliament Speaker Nabih Berri (L) and Prime Minister-designate Nawaf Salam at the Presidential Palace in Baabda, Lebanon, 14 January 2025. (Lebanese Presidency Press Office)

Lebanon’s Prime Minister-designate Nawaf Salam arrived in Beirut on Tuesday to kick off parliamentary consultations to form a new government.

He assured that it will “not exclude anyone”, but seek “unity and partnership.”

Asharq Al-Awsat learned that President Joseph Aoun is leading efforts to avert a Shiite boycott of the new government after the “Shiite duo” of the Hezbollah and Amal movement, which is led by parliament Speaker Nabih Berri, refrained from naming Salam for the position of PM during Monday’s consultations.

Their abstention has raised fears that the new government will not be constitutional without the representation of the largest Shiite parties in the country.

Reports have said that the duo may boycott the parliamentary consultations to form a government that Salam will hold on Wednesday.

Sources said the duo may skip the first day of talks, which will conclude on Thursday, to demonstrate its “annoyance” with the developments.

Berri, however, told Asharq Al-Awsat that the “situation is not that negative”. He did not elaborate on the duo’s next steps.

Moreover, Asharq Al-Awsat learned that French President Macron had even intervened to avoid a dispute over the government, holding telephone talks with Aoun and Berri.

Salam’s appointment as prime minister came as a major shock given the large number of votes he won from the parliamentary blocs, compared to his predecessor Najib Mikati and against the will of the Shiite duo. In past years, Hezbollah has repeatedly blocked Salam from becoming prime minister.

Aoun stressed the need to “avoid placing obstacles in the government formation process.”

Aoun held a meeting with Salam at the presidential palace on Tuesday before later being joined by Berri, who left the palace without making a statement.

After the talks, Salam spoke before reporters to express his gratitude to parliament and the people for entrusting him with the “difficult task of serving Lebanon” and “achieving the people’s dreams.”

“It is time to open a new chapter that is rooted in justice, security, progress and opportunity, so that Lebanon can be a nation of free people who are equal under their rights,” he added.

On the possible boycott of the Shiite duo, he said he was against exclusion and on the contrary supported unity. “This is my sincere call, and my hands are extended to everyone,” he added.

The formation of a government in Lebanon often takes months due to political wrangling.

Aoun said on Tuesday that Lebanon has a “very major opportunity that we should all seize.”

He received a delegation from the Supreme Islamic Shiite Council.

“Obstacles must not be placed in the formation process,” he urged. “We must send positive signals to the international community that Lebanon can govern itself, carry out reconstruction transparently and build the state that we are all calling for.”

“If one segment of Lebanon is broken, then the whole country will break,” he stressed, saying Monday’s consultations to appoint Salam were a democratic process and that the public interest remains the top priority.

Aoun, who was elected last week, added that he has declined visits from well-wishers over his election “out of respect for the martyrs” who were killed during Israel’s war on Lebanon, which ended with a ceasefire in November.