Iraqi officials defended Thursday a deal inked this week to barter oil for gas with Iran, saying it does not violate U.S. sanctions on Tehran but will help alleviate a worsening electricity crisis in Iraq.
The remarks come as the government in Baghdad struggles to balance between its two key allies, Washington and Tehran. A previous arrangement in which Iraq was buying gas from Iran and paying dollars for it was held up because Washington declined to approve sanctions waivers. That in turn led Iran to cut the gas supply, triggering severe power shortages in Iraq.
