Cash-Strapped Iraq Seeks $2 Billion Upfront Payment for Oil

  • Baghdad turns to pre-payment oil contract for the first time
  • Iraq suffering economic crisis due to low prices, OPEC+ cuts

Photographer: Haidar Mohammed/AFP via Getty Images

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Iraq is seeking an upfront payment of about $2 billion in exchange for a long-term crude-supply contract, the latest sign of Baghdad’s growing desperation for cash as its economy unravels.

The Middle Eastern country is grappling with a crisis brought to a head by low oil prices and OPEC+ output cuts. As state coffers dwindle and school teachers go unpaid, the country risks a repeat of upheaval last year that brought down the government and saw hundreds of protesters killed.