Iraq has agreed to supply Lebanon with fuel for six more months, the office of Iraqi Prime Minister Mohammed Shia al-Sudani said in a statement on Saturday, renewing a deal meant to alleviate Lebanon's acute power shortage.

Under the heavy fuel oil deal, first agreed in July 2021, Iraq provides the Lebanese government with the fuel in exchange for services including health care for Iraqi citizens.

Lebanon then swaps the heavy fuel oil for gas oil that it can use at its power stations.

These have operated for decades at partial capacity, but electricity provision deteriorated further during a financial crisis that has hit the state's ability to buy fuel.