Oil exports are vital to Iraq's economy

Pumping at Iraq's only functioning oil terminals in Basra halted at 0300 GMT on Monday morning after a power cut affected southern and central Iraq.

Iraqi officials said the blackouts were caused by an attack on a key power line between Baghdad and Beiji last week.

Iraq relies on oil exports from the south - where 1.5 million barrels are pumped daily - for much of its revenue.

Vital outlet

Its other main export route - a pipeline running through the north of the country to Turkey - has been rendered unusable by constant sabotage.

Prolonged disruption to Iraqi oil exports is likely to further push up world oil prices.

In Asian trading on Monday morning, prices remained above $65 a barrel, although 25 cents down on the day.

A representative from a Jordanian shipping company confirmed that exports from southern Iraq had ceased.

"Oil terminals have completely stopped exports from Basra and Khor al-Amaya," Mohammed Hadi, head of Iraq operations for Norton Lilly International, told Associated Press.

Power failure

The power failure was triggered by the closure of the largest power plant in southern Iraq, which supplies electricity to the city of Basra and the nearby port of Umm Qasr.

Parts of Baghdad were also left without electricity following the attack on the central power line, which officials said happened on Friday.

Iraq is dependent on oil exports from the south of the country as its northern supply route has effectively been cut off.