Iraq faces national grid instability and massive revenue losses as Rumaila power plant loses 1,900 MW

Iraq's national grid loses 1,900 MW following gas supply drops at Rumaila. Oil production halts lead to $128 million daily losses amid regional war.

By: AXL Media

Published: Mar 5, 2026, 5:30 AM EST

Source: The information in this article was sourced from Shafaq News

Technical Disruption and Grid Instability

Iraq’s Ministry of Electricity confirmed on Thursday that a rapid decline in fuel supply to the Rumaila power station led to a temporary collapse in voltage and the disconnection of several critical transmission lines. The loss of 1,900 MW forced multiple production units to shut down, affecting the stability of the national grid across central and southern provinces. Technical teams are currently working under the supervision of Deputy Minister Khaled Ghazai al-Maadhidi to restore power, with a gradual return of electricity reported in northern provinces including Nineveh, Kirkuk, and Saladin.

Economic Fallout of the Middle East Conflict

The energy crisis is compounded by staggering financial losses as the regional war between the U.S.-Israeli coalition and Iran impacts Iraq’s oil sector. The Eco Iraq Observatory estimates that Iraq is losing approximately $128 million per day. With production at the Rumaila oil field—the world’s second-largest—halted due to export disruptions and storage tanks reaching capacity, the financial toll could exceed $3.8 billion if the suspension lasts a full month. Total halted output, including fields in the Kurdistan Region, is estimated at 1.6 million barrels per day.

Security Mobilization Around Critical Infrastructure

In response to the escalating tensions, units of the Iraqi Army, supported by armored vehicles, have deployed across the Al-Zubair district west of Basra. This mobilization is intended to secure oil fields and prevent sabotage or further disruptions as regional military activity intensifies. The presence of military forces around Rumaila underscores the strategic importance of the facility, not only for Iraq’s domestic energy needs but also for its primary source of state revenue.