Iran Halts Gas Exports to Iraq, Cutting 4,500 Megawatts
Iran suspended natural gas supplies to Iraq on December 23, 2025, removing up to 4,500 megawatts from the national grid due to domestic heating demands.
Iran completely suspended natural gas exports to Iraq on December 23, 2025, citing emergency and unforeseen circumstances. The shutdown removed between 4,000 and 4,500 megawatts from the Iraqi national grid, forcing several power units to shut down or implement load restrictions. The disruption followed a cold spell in Iran, where temperatures dropped to minus 10 degrees Celsius, sharply increasing domestic demand for heating.
The Ministry of Electricity of Iraq coordinated with the Ministry of Oil to switch to domestic alternative fuels to mitigate the shortfall. This energy shock occurs as Iraq struggles with chronic shortages, currently generating only 20,000 to 25,000 MW against a nationwide demand of 54,000 MW. Prime Minister Mohammed Shia' al-Sudani has stated a goal of achieving gas self-sufficiency by 2028, supported by Western projects from BP and TotalEnergies.
The cessation coincides with the United States' reinstated maximum pressure campaign. The administration of Donald Trump recently rescinded a waiver that allowed Iraq to pay Iran for electricity imports, though an exemption for natural gas remains. U.S. officials stated the policy aims to block Iran's nuclear threat and ballistic missile program through economic and diplomatic measures.
