Iraq braces for summer blackouts as the US‑Israeli war severs gas flow from Iran, deepening an energy crisis that already throttles oil exports through the Strait of Hormuz. With temperatures soaring past 45 °C, cooling demand surges, threatening to cripple a country whose budget relies on oil revenue for the year.

Oil output has collapsed to about a quarter of pre‑war levels, forcing Iraq to shut most fields. The loss of Iranian gas, cut after Israel bombed South Pars in March, leaves power plants short of the 50 million cubic metres they need, pushing the grid toward frequent outages in the coming summer.

A floating LNG terminal by Excelerate Energy, meant to offset shortages, has stalled amid the war. Iraq’s dependence on imported gas has given Tehran leverage, while domestic subsidies kept electricity cheap, inflating demand beyond the grid’s capacity and leaving the ministry scrambling to meet peak summer needs for the nation.

Political fallout looms as the new prime minister faces a budget crunch and possible unrest from blackouts. With oil exports cut and the Strait of Hormuz blocked, Iraq could borrow to bridge the gap if the conflict eases, but a prolonged war risks crippling public spending and widening instability for the nation.