Lebanon requests an exemption from a $1.1 billion oil bill!

Iraq's influential parties are strongly opposing Lebanon's request for an exemption from the $1.1 billion due to them under a previous oil agreement.

Nidaa Al-Watan, a Lebanese agency, reports that the payment has not yet been made, as stipulated in the July 2021 agreement.

A new agreement to supply Lebanon with 1.5 million metric tons of oil is reportedly being discussed behind the scenes, according to Nidaa al-Watan.

As part of the agreement, Lebanon pays Iraq for fuel shipments within Lebanon in Lebanese pounds in exchange for healthcare services provided to Iraqis.

The country then exchanges the heavy fuel oil for gas oil that can be used in its power stations, which have almost shut down due to the collapse of Lebanon's banking and currency system in 2019.

During 2021 and 2022, Lebanon obtained one million tons of fuel oil that helped provide its residents with only one to two hours of electricity a day. Those who can afford it rely on private generators or solar panels.

Baghdad agreed to increase the volume of heavy fuel oil supplied to Lebanon by 50 percent to 1.5 million metric tons in May.

Iraq agreed to supply Lebanon with 3.5 million tons of oil and fuel in July, which was expected to help Lebanon's struggling electricity sector.

The US warned Lebanon that accepting Iranian oil could lead to US sanctions if it accepts the Iranian oil. Last year, Iran said it would provide Lebanon with 660,000 tons of gasoline for free to ease electricity shortages.

Hezbollah leader Hassan Nasrallah responded by accusing the US of preventing Lebanon from taking free fuel from Iran as a part of US sanctions against Iran.

A shortage of foreign exchange, most notably dollars, made imports, including fuel, much more expensive as the Lebanese banking sector almost collapsed in 2019.