Iran seeks access to $11B in energy funds in Iraq

Shafaq News- Tehran/ Baghdad

Iran has between $10 billion and $11 billion in funds and energy receivables held or owed in Iraq, Central Bank of Iran Governor Abd Al-Naser Hemmati announced on Thursday.

Hemmati said he discussed the funds with Iraqi Central Bank Governor Nizar Nasser Hussein during Prime Minister Ali Al-Zaidi’s visit to Tehran, with both sides seeking mechanisms to allow Iran to finance imports or complete permitted financial transfers.

Part of the money has already been used to purchase essential goods, but transfer restrictions continue to “limit [Tehran’s] access” to the remainder.

Iraq deposits payments for Iranian gas and electricity into restricted accounts because US sanctions limit direct dollar and euro transfers to Iranian institutions.

Iraq pays Iran $4 billion to $5 billion annually for gas, according to Iraqi energy officials cited by Reuters in March 2025. Then-Electricity Minister Ziyad Ali Fadel estimated that losing Iranian gas would cut about one-third of Iraq’s 27,000 MW electricity output.

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