Trump Administration Ends Iraq's Waiver to Purchase Iranian Electricity
WASHINGTON, March 8
– The Trump administration ended a waiver on Saturday that allowed Iraq to purchase electricity from Iran, as part of its "maximum pressure" campaign against Tehran, according to a State Department spokesperson.
The decision to allow Iraq's waiver to expire "ensures that Iran does not receive any economic or financial relief," the spokesperson explained, emphasizing that the campaign aims to curb Iran’s nuclear ambitions, ballistic missile program, and support for terrorist organizations.
Upon returning to office in January, Trump reinstated his "maximum pressure" policy on Iran. During his first term, Trump pulled the U.S. out of the Iran nuclear deal, a multinational agreement designed to prevent Iran from developing nuclear weapons. The U.S. has since sought to isolate Iran economically and halt its oil exports to limit its nuclear weapons development.
Iran denies seeking nuclear weapons, insisting its nuclear program is for peaceful purposes.
For Iraq, the termination of the waiver "poses temporary operational challenges," said Farhad Alaaeldin, foreign affairs adviser to Prime Minister Mohammed Shia al-Sudani. Alaaeldin told Reuters, “The government is working on alternatives to maintain electricity supply and avoid disruptions. Strengthening energy security remains a priority, and efforts to enhance domestic production, improve grid efficiency, and invest in new technologies will continue.”
The U.S. has imposed sanctions on Iran over its nuclear activities and support for militant groups, restricting countries that do business with Iran from engaging with the U.S. government.
National Security spokesperson James Hewitt added, “President Trump has been clear that Iran must abandon its pursuit of nuclear weapons or face maximum pressure. We hope the regime will prioritize the interests of its people and the region, rather than destabilizing policies.”
Pressure on Baghdad When Trump reimposed sanctions on Iranian energy exports in 2018, he initially granted waivers to several countries, including Iraq, to meet energy needs. While both the Trump and Biden administrations extended Iraq’s waiver, they also urged Baghdad to reduce its dependence on Iranian electricity. A State Department spokesperson reiterated that call on Saturday, saying, “We urge Iraq to eliminate its reliance on Iranian energy as soon as possible. Iran is an unreliable supplier.”The U.S. has used the waiver review to press Iraq into allowing Kurdish crude oil exports through Turkey, which would increase global oil supply and help stabilize prices, further limiting Iranian oil exports. Negotiations over Kurdish oil exports have been complex."Iraq’s energy transition presents opportunities for U.S. companies, experts in boosting power plant productivity, enhancing electricity grids, and developing reliable energy partnerships," the State Department spokesperson added.Despite the loss of Iranian electricity, the spokesperson downplayed its impact on Iraq’s grid, noting that in 2023, Iranian imports accounted for just 4% of Iraq's total electricity consumption.