Iraq has agreed to extend its fuel supply to Lebanon for an additional six months, according to a statement from the office of Iraqi Prime Minister Mohammed Shia al-Sudani on Saturday. This agreement renews a deal that aims to help ease Lebanon’s severe power shortages.
The arrangement, first established in July 2021, sees Iraq providing heavy fuel oil to Lebanon in exchange for services, including healthcare for Iraqi citizens.
Lebanon then converts the fuel into gas oil, which is used to run its power plants. These plants have been operating at reduced capacity for years, and the country’s ongoing financial crisis has worsened its ability to secure sufficient fuel for electricity generation.
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