Jordan is to get Iraqi oil at half price

Iraq has agreed to continue to supply Jordan with oil at half the international market price.

Under the deal, Jordan will buy four-point-eight million tonnes of oil next year, which is slightly more than what it took from Iraq in the past year.

After signing the agreement in Baghdad, the Jordanian Energy Minister, Mouhammad Alhourani, said the reduced price was a gift from President Saddam Hussein to the Jordanian people.

The deal follows a recent row between the two countries sparked by the hanging by Iraq of four Jordanians accused of smuggling.

Jordan responded by by expelling Iraqi diplomats and reducing its diplomatic staff in Baghdad.

From the newsroom of the BBC World Service