Lebanon and Iraq have renewed a key energy deal through which Baghdad will supply Beirut with two million tons of crude oil, now under new payment terms that reflect shifting regional dynamics.
In a notable departure from past arrangements, Lebanon has agreed to settle its dues in US dollars via direct transfers from the Banque du Liban, ending years of deferred compensation paid through services. The shift is seen as a bid to restore financial credibility and streamline trade operations amid Lebanon’s ongoing economic crisis.
The agreement was finalized during an official visit to Baghdad by Lebanese Minister of Finance Yassine Jaber and Minister of Energy Joe Saddi. Beyond energy, the high-level talks covered broader cooperation in telecoms, agriculture and infrastructure development.
Iraqi Prime Minister Mohammed Shia al-Sudani praised the upgraded framework, reaffirming Iraq’s support for Lebanon “in these difficult times.” President Abdul Latif Rashid echoed that sentiment during a separate meeting as he pledged the delivery of 320,000 tons of wheat and revived discussions on reopening a long-defunct oil pipeline between the two countries.
The visit marks a strategic step toward deepening ties between Beirut and Baghdad, with both sides viewing energy, trade and infrastructure as cornerstones of regional stability and economic recovery.
Comments