Jordan-Iraq Tensions Disrupt Oil and Power
The cessation of oil and electricity supplies between Jordan and Iraq is due to the expiration of contractual arrangements and fluctuations in the type of crude oil required. Iraqi oil shipments have been halted since the beginning of 2026, after Jordan was importing approximately 2.75 million barrels annually, meeting around 7% of its oil needs. Iraq is currently negotiating to resume exports, attempting to change the crude type from Kirkuk to Basra, but technical and contractual differences are hindering this process. Regarding electricity, Jordan's supply to the Ruweished district has ended, as it has become reliant on the Iraqi grid. The two countries are working to expand the electrical interconnection project to reach 500 MW, but some technical and political setbacks are delaying its implementation.
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