BAGHDAD (Agencies): An exchange of Iranian natural gas for Iraqi oil, proposed by Iraqi Prime Minister Mohammed Shia Al-Sudani, could potentially violate US sanctions on Iran unless a waiver is issued, according to former US officials.

Al-Sudani announced the plan as a way to address payment delays to Tehran, which require US approval for financial transactions. However, experts suggest that such a barter would likely run afoul of US sanctions, including the Iran Freedom and Counter-Proliferation Act, which prohibits energy-related transactions with Iran. While a waiver allowing Iraq to purchase Iranian electricity was issued in March, it does not cover natural gas imports.

The US Treasury Department’s broad definition of “transaction” indicates that a barter exchange would likely be included. Nonetheless, the decision to overlook the violation would be a political one rather than strictly legal.

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