On January 27 it was announced that Iran had stopped electricity exports to Iraq. It claimed this was due to international pressure and regional politics. This comes on top of a halt in natural gas exports by Iran severely cutting power supply in Iraq.
Iran provides 40% of Iraq’s power needs so these two acts are having a massive impact. When gas exports were stopped in December Iraq lost 5000 megawatts of electricity.
Tehran has never consistently supplied Iraq with energy. In February, May, June and November of 2025 gas was partially cut to Baghdad while in January and March the same thing happened with electricity.
Not only that but in March 2025 the United States ended Iraq’s exemption from sanctions for buying Iranian electricity. The trade continues however because Iraq has not been able to find suitable alternatives. That is not for lack of trying. Baghdad has signed a series of deals for electricity and natural gas but they have not come close to challenging Tehran’s dominance in the field.
On top of that Baghdad never makes any real complaints about Iran’s practices. That’s because so many of the ruling parties are connected to Tehran and do not want to make a fuss with their allies and sponsors. That leaves large swaths of the Iraqi population paying for private generators to provide power because the government has failed but that means little to the elite who are only concerned about themselves.
SOURCES
Asharq Al-Awsat, “Iraq PM Adviser: US Keeps Iran Gas Waiver but Ends Power Exemption,” 3/12/25
Rudaw, “Iran cuts Diyala province electricity: Local official,” 3/2/25
Salem, Amr, “Iran halts electricity supplies to Iraq,” Iraqi News, 1/27/26
- “Iraq’s electricity production declines,” Iraqi News, 2/9/25
Shafaq News, “Diyala: Iranian Mersad power line stop unexpectedly, cause unknown,” 1/24/25
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