As millions of Iranians face severe gas shortages and struggle to heat their homes during one of the coldest winters in recent years, Iranian authorities have confirmed that gas exports to Iraq will continue. This comes despite U.S. sanctions and the reported $11 billion debt Iraq owes to Iran for previous energy imports.
Saeed Tavakoli, CEO of the National Iranian Gas Company, stated that Iran has “recently extended a favorable long-term contract for gas exports to Iraq,” dismissing concerns about the impact of U.S. sanctions on these transactions. “With regard to the recent decision by the United States to revoke Iraq’s waiver for importing Iranian gas, it is likely that this applies to a different type of gas transaction,” he told state media on February 7, 2025.
Meanwhile, millions of Iranian citizens continue to suffer from gas shortages, power outages, and extreme cold. Tavakoli attempted to reassure the public, claiming that “currently, 72% of gas production is consumed domestically, and with the cooperation of our fellow citizens, the gas network will remain stable in the coming days.” However, this statement contradicts the reality faced by Iranian households, many of which have been left without heating due to repeated blackouts and gas supply disruptions.
#Iran, despite holding the world’s second-largest natural gas reserves, finds itself in the paradoxical position of needing to import #gas.https://t.co/SFWBhQ9mC0
— NCRI-FAC (@iran_policy) October 18, 2023
The situation has been exacerbated by the Iranian government’s continued energy agreements with Iraq, despite Baghdad’s failure to settle its multi-billion-dollar debt. Iraqi officials have previously stated that payments have been deposited in an official account at the Trade Bank of Iraq but remain blocked due to international sanctions and financial restrictions.
U.S. President Donald Trump issued a MEMO on February 5, 2025, revoking Iraq’s exemption from sanctions, effectively cutting off Baghdad’s ability to legally import Iranian gas. The New Arab reported that “Iraq is unable to secure alternative supplies for the 50–55 million cubic meters of gas it receives daily from Iran,” raising concerns about a looming electricity crisis. Energy expert Harry Istepanian warned that “without an immediate solution to replace Iranian gas, Iraq may face another wave of protests or even riots, particularly in the south.”
Gas Shortage Crisis in #Iran Disrupts Key Industries and #Electricity Generationhttps://t.co/Ewbaa6FW1b
— NCRI-FAC (@iran_policy) December 27, 2024
Despite mounting financial and political challenges, the Iranian regime continues to export energy abroad while its own citizens endure gas shortages and freezing temperatures. Authorities insist that “energy stability is being managed,” yet reports of rationing and heating crises persist across the country. Public frustration grows as the government prioritizes foreign energy deals over domestic needs.
The worsening energy crisis has now led to the closure of government offices and schools in 28 provinces, leaving millions struggling to stay warm. Yet, instead of addressing the dire situation at home, the regime remains focused on maintaining gas exports to Iraq. This latest shutdown underscores Tehran’s ongoing policy of prioritizing regional influence over the well-being of its own people.