Iraq-US Agree Goods-for-Debt Plan Amid Iranian Energy Dispute

Baghdad and Washington have agreed on a mechanism to settle part of Iraq's outstanding debt to Iran for gas and electricity imports. The arrangement allows Iraq to supply goods and commodities in lieu of direct cash payments, which would otherwise be blocked by US sanctions.

Riyadh Uday, a member of the Iraqi parliament's Electricity and Energy Committee, said that Iran is seeking around $11 billion in unpaid dues for exports of natural gas and electricity. Part of this money is currently held at the Trade Bank of Iraq but cannot be transferred due to US restrictions.

The proposed arrangement aims to reduce the risk of disruptions to gas supplies critical for Iraq's electricity network, which relies heavily on Iranian natural gas during peak summer demand periods.