U.S. Halts Waiver Allowing Iraq to Import Electricity from Iran

The United States has decided not to renew a sanctions waiver that previously allowed Iraq to purchase electricity from neighboring Iran.

The move, confirmed by a spokesperson for the U.S. embassy in Baghdad on Sunday, raises concerns over Iraq’s energy security as the country remains heavily reliant on Iranian imports.

Despite possessing vast oil and gas reserves, Iraq continues to depend on external supplies to meet its domestic energy demands, with Iran providing nearly one-third of its electricity and natural gas. However, Washington’s latest decision underscores its commitment to applying economic pressure on Tehran.

“On March 8, the U.S. Department of State did not renew the waiver for Iraq to purchase Iranian electricity,” the embassy spokesperson stated, emphasizing that the decision aims to prevent Iran from gaining any financial relief.

The waiver was originally introduced in 2018 after former U.S. President Donald Trump withdrew from the Iran nuclear deal and reinstated sanctions.

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Now, with Trump back in office since January, his administration has revived its “maximum pressure” strategy against Iran, seeking to curtail its nuclear ambitions, missile program, and alleged support for militant groups.

While the U.S. statement focused on electricity imports, it notably did not address the status of Iranian gas imports, which are essential for Iraq’s power generation.

The U.S. has also urged Baghdad to reduce its reliance on Iranian energy. “Iran is an unreliable energy supplier, and Iraq must work towards eliminating its dependence on Iranian sources as soon as possible,” the embassy spokesperson warned.

Iraq, for its part, has expressed readiness to navigate the potential fallout from the waiver’s expiration. The government has reaffirmed its commitment to achieving energy self-sufficiency by 2028, implementing measures to diversify energy sources and invest in domestic production.

As the situation unfolds, Iraq faces a critical challenge: balancing its energy needs while navigating geopolitical tensions between Washington and Tehran. The decision not only tests Iraq’s resilience but also highlights the broader complexities of regional energy politics in the Middle East.