Iran, Iraq Near Gas Export, Payment Dispute Resolution

Iran and Iraq are close to resolving their long-standing disputes concerning the volume of Iranian gas exports to Iraq and the arrears Iraq owes for previous deliveries, according to statements from Iran's Oil Minister Mohsen Paknejad following meetings with Iraqi Electricity Minister Ziad Ali Fadhil. Both sides have reportedly reached a consensus on gas export volumes at the Shalamcheh and Naft Shahr border points and have made positive progress on payment settlements, with expectations that the issues will be resolved soon. The disruption in Iranian gas supplies has significantly impacted Iraq's electricity generation, forcing power cuts amid soaring summer temperatures and increasing demand, as Iraq depends on Iran for roughly one-third of its power needs. U.S. sanctions complicate financial transactions, but ongoing negotiations and a recent five-year extension of the gas export agreement provide some flexibility. Additionally, both ministers emphasized cooperation regarding the hospitality for Iranian pilgrims during the annual Arbaeen pilgrimage. The resolution of these energy issues is critical for stabilizing Iraq's power grid and maintaining bilateral relations between the two countries.