The Trump administration has revoked a waiver that previously allowed Iraq to pay Iran for electricity, reinforcing its “maximum pressure” campaign against Tehran, a State Department spokesperson confirmed on Saturday.
The waiver, initially granted to help Iraq meet its energy needs despite US sanctions on Iran, has recently expired. The decision aligns with Trump’s broader strategy to prevent Iran from receiving economic relief, limit its nuclear and missile programs, and curb its support for militant groups.
Read more: Iranian drug smuggling gang arrested in Lahore
Since taking office, President Trump has intensified economic sanctions on Iran, aiming to isolate the country and reduce its oil revenues, which the US sees as funding Tehran’s nuclear ambitions. Iran, however, maintains that its nuclear activities are solely for peaceful purposes.
Ending the waiver presents challenges for Iraq, which relies on Iranian electricity imports. Farhad Alaaeldin, an adviser to Iraqi Prime Minister Mohammed Shia al-Sudani, acknowledged the short-term difficulties but assured that the government is working on alternative solutions to maintain energy stability.
“Iraq is committed to strengthening energy security by increasing domestic production, improving grid efficiency, and investing in technology to reduce reliance on external energy sources,” Alaaeldin stated.
The US has long urged Iraq to lessen its dependence on Iran for electricity, calling Tehran an “unreliable energy supplier.” National Security spokesperson James Hewitt reiterated that Iran must abandon its nuclear ambitions and destabilizing activities or continue facing sanctions.
Additionally, the waiver review was used as leverage to push Iraq into resolving disputes with the Kurdish region, with the goal of increasing global oil supply and managing prices while restricting Iran’s oil exports. However, discussions between Iraq and the Kurdish region on oil exports remain challenging.
Despite concerns over energy supply, US officials noted that Iranian electricity accounted for just 4% of Iraq’s total consumption in 2023, downplaying its significance. The State Department emphasized that US companies could assist Iraq in developing its energy infrastructure, improving power plants, and building stronger grid connections with reliable partners.
As the situation unfolds, Iraq faces mounting pressure to secure alternative energy sources while navigating the broader geopolitical implications of US sanctions on Iran.
