A senior official from the Iraqi Ministry of Foreign Affairs announced that the government has agreed to pay approximately $2.76 billion in gas and electricity debts to Iran after receiving a waiver from U.S. sanctions. A source from the Ministry of Foreign Affairs told Reuters that "Iraqi Foreign Minister Fuad Hussein obtained the waiver during a meeting with U.S. Secretary of State Antony Blinken on the sidelines of the Riyadh conference on Thursday."
Furthermore, Iraqi Foreign Ministry spokesman Ahmed Al-Sahhaf stated in a brief statement that "Hussein made progress regarding the financial dues between Iraq and Iran during his conversation with Blinken in Riyadh," when asked about the dues. Iranian news agencies quoted the head of the Iranian-Iraqi Chamber of Commerce, Yahya Al-Ishaq, as saying that "a portion of those released funds is allocated for the expenses of Iranian pilgrims in Saudi Arabia, while the other part is designated for purchasing basic goods."
Due to decades of conflict and sanctions, Iraq relies on imports from Iran for many of its gas needs. However, U.S. sanctions on Iranian oil and gas have hindered Iraq's ability to pay for these imports, resulting in significant debts that led Iran to frequently cut gas supplies.
