Iraq energy report flags oil, electricity and gas vulnerabilities

BAGHDAD, Iraq — A new report on Iraq's energy sector says the country needs structural changes in oil, electricity and natural gas after the 2026 regional crisis. The report finds that an economy heavily reliant on oil revenues remains highly exposed to disruptions in energy supply. According to the report, shortfalls in the electricity grid and bottlenecks in natural gas supply are weighing on industrial output and public services. Experts cited in the findings urge Iraq to reduce its dependence on imported gas and expand domestic production. The report lists upgrading power transmission and distribution infrastructure, reducing transmission and theft losses, and diversifying investment as priority steps. It warns that delays in energy-sector reform would keep pressure on the budget deficit and the exchange rate.