In Perspective: Iraq’s Gas Challenges

What are the roles of Iran and the US?

MAIN TAKEAWAYS:

• The oil-for-gas deal between Iran and Iraq remains hazy, but the type of crude oil Iraq has reportedly agreed to offer Iran is an important element in the agreement.

• The US will most likely continue extending its waivers to Iraq to continue importing Iranian energy supplies, but it will tighten the noose on other issues, such as US currency transfers from Iraq to Iran.  

• Iraq’s gas capture projects do not mean that Baghdad will be able to cut its imports from Iran. Iraq needs Iranian energy supplies for years to come.