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Iran Expands Its Sphere Of Influence With Iraqi Energy Deals

Premium Content Iran Expands Its Sphere Of Influence With Iraqi Energy Deals By Simon Watkins - Jan 14, 2021, 3:00 PM CST Iraq announced two deals with countries that Iran hopes can be gradually moved further into its sphere of influence. One of the two, Lebanon, is already seen by Tehran as a key player in the Shia crescent of power that it has been meticulously developing for years - as a counterpoint to the U.S.’s own sphere of influence centred on Saudi Arabia - that stretches from Syria and Lebanon through Iraq and Iran and then south into Yemen. According to comments last week from Iraq’s new Oil Minister, Ihsan Abdul Jabbar, following a meeting in Baghdad with his Lebanon counterpart, Raymond Ghajar, Iraq will begin exporting fuel to Lebanon this month. The geopolitical imperative underpinning this announcement cannot be overstated, given that Iraq itself suffered from extreme power shortages over the summer and remains subject to intermittent power failures

Iraq strikes $2 billion prepayment crude oil supply deal with China s Zhenhua

Last Updated: Iraq Strikes $2 Billion Prepayment Crude Oil Supply Deal With China s Zhenhua Iraq s SOMO signed a deal with China’s ZhenHua to supply 130,000 crude oil barrels per day, upto 4 million barrels worth $2 bn with an upfront annual payment. Iraq on January 2 struck a multibillion-dollar oil-supply deal with a Chinese firm after Iraqi Prime Minister Mustafa al-Kadhimi approved the rare contract in the Iraqi parliament. China’s ZhenHua Oil Company finalized a deal with Iraq’s State Oil Marketing Organization (SOMO) for the monthly purchase of 4 million oil barrels worth $2 billion in a 5-year annual contract. The Iraq-China crude supply deal will bolster Iraq’s economy which is in shambles due to the coronavirus pandemic. Iraq is the latest with the prepayment settlement among the Chinese state-owned trading companies that struck similar deals with Angola, Venezuela, and Ecuador, previously to rescue the cash strapped economies. 

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