Iraq has achieved energy independence for the first time in nearly 45 years, with the government announcing a complete halt to fuel imports as domestic production now exceeds national consumption.
On Tuesday, Prime Minister Mohammed Shia al-Sudani issued a directive ending imports of gas, oil, and kerosene, according to a report from the Iraqi News Agency (INA). The directive quoted al-Sudani as stating: “The Ministry of Oil has achieved self-sufficiency through progress made in the oil sector—particularly in liquid fuels—including gasoline, gas oil, and kerosene, in quantities exceeding domestic consumption rates.”
Despite being the second-largest oil producer in OPEC and the fourth-largest globally, Iraq has long relied on fuel imports due to decades of conflict, sanctions, and underinvestment in refining and infrastructure. The announcement marks the first time since before the Iran–Iraq War in 1980 that Iraq has been fully energy self-sufficient. That war, which began with Iraq’s invasion of Iran, led to years of bombardment of Iraq’s oil facilities and a collapse in refining capacity.
Energy independence is the culmination of a multi-year national strategy led by al-Sudani’s administration, which prioritized expanding domestic refining capacity and upgrading production infrastructure. The government signed significant agreements with energy firms from China, South Korea, Japan, and the United States, while also investing in domestic equipment manufacturing to support production.
Before al-Sudani took office in 2022, Iraq imported roughly 15% of its total energy consumption, including around 25% of its gasoline. The new self-sufficiency milestone allows Iraq to significantly reduce external dependency and enhance its fiscal stability.
The timing is also geopolitically significant. Earlier this year, Baghdad halted natural gas imports from Iran, and a planned deal to import Turkmen gas through Iranian pipelines was blocked by the Trump administration. By now producing enough energy domestically, Iraq gains more autonomy from both Tehran and Washington as it prepares for the full withdrawal of U.S. forces—scheduled for completion by September 2026.