Iraq to sell Lebanon 1 million tons of heavy fuel oil

Iraq signed on Saturday an agreement that allows cash-strapped Lebanon to pay for one million tons worth of heavy fuel oil in terms of goods and services, Iraqi news agency reported (INA), citing an official statement.

Lebanon is in the throes of a deep economic meltdown that is threatening its stability. It has all but run down its foreign currency reserves and shortages of basic goods such as fuel and medicine have worsened.

On July 19, Lebanon announced that it will allow industries to import diesel directly amidst worsening fuel shortages, the caretaker industry minister said, effectively removing the subsidy for the fuel product.

“Subsidies for diesel will stop and we consider it stopped,” Imad Hoballah said after the meeting.

Lebanon is battling an economic meltdown, described by the World Bank as one of the deepest depressions of modern history, that is threatening its stability.