Iran Halts Gas Supplies to Iraq, Triggering Power Shortfall

Iraq said natural gas supplies from Iran have been fully halted, resulting in the loss of up to 4,500 MW of power generation and highlighting Baghdad’s reliance on cross-border gas imports amid ongoing U.S. sanctions pressure.

(Reuters) - Iraq’s supply of gas from Iran has been halted, the electricity ministry said on Tuesday, adding that the stoppage was due to the shutdown of some generating units and load shedding at others.

The ministry reported that 4,000 to 4,500 megawatts of power has been lost from the electrical system as a result of the halt to Iranian gas supplies.

"The Iranian side sent a telegram informing the Ministry of Electricity of the complete cessation of gas supplies due to unforeseen circumstances," the statement added.

Iran supplies between a third and 40% of Iraq's gas and power needs.

In March, U.S. President Donald Trump's administration rescinded a waiver that had allowed Iraq, which struggles with chronic power shortages, to pay Iran for electricity. The move was part of Trump's "maximum pressure" campaign against Tehran.