The United States has officially terminated a sanctions waiver that previously allowed Iraq to import electricity from Iran, aligning with President Donald Trump’s “maximum pressure” strategy against Tehran.
In a statement on Sunday, the US Department of State clarified that the waiver renewal was denied to prevent any financial or economic relief for Iran.
This waiver was first introduced in 2018 when Washington reinstated sanctions on Tehran following Trump’s withdrawal from the Iran nuclear agreement, which had been negotiated under former President Barack Obama. At that time, Trump imposed stringent penalties on nations purchasing Iranian oil, though Iraq was granted an exemption due to its strategic partnership with the US.
Since resuming office for a second term in January, Trump has reinforced his firm stance against Iran. A spokesperson for the US embassy in Baghdad reiterated that the campaign aims to dismantle Iran’s nuclear capabilities, limit its ballistic missile program, and cut off its support for terrorist organizations. The official also urged Iraq to reduce its energy dependence on Iran as quickly as possible.
However, Iraq faces serious challenges in finding alternative energy sources. Despite its abundant oil and gas reserves, the country has struggled with persistent electricity shortages due to war, corruption, and mismanagement. Heavily reliant on Iranian gas and direct electricity imports, Iraq now faces a critical energy gap.
Iraqi energy officials told Reuters that there are no immediate alternatives to offset the loss of Iranian electricity, which could lead to severe power shortages, particularly in the summer when temperatures exceed 50°C (122°F). Many citizens may be forced to rely on private diesel generators or endure extended blackouts.
While the expired waiver applied specifically to electricity imports, it remains uncertain whether Iraq can continue importing Iranian gas for power generation. The US embassy claimed that Iranian electricity accounts for only 4% of Iraq’s total consumption. However, Iraq’s Ministry of Electricity warned that if gas imports were also blocked, the country could lose over 30% of its power supply.
Energy Ministry spokesperson Ahmad Moussa revealed that Iranian gas supplies to Baghdad and the central Euphrates region had already been halted for two months, while deliveries to southern power plants remained unstable. A senior ministry official told The Associated Press that Iraq had not yet received formal notification regarding restrictions on gas imports.
The US administration’s decision comes shortly after Trump disclosed that he had reached out to Iran’s leadership to initiate discussions on a nuclear agreement, warning of potential military action if Iran refused negotiations.
Iran’s Supreme Leader, Ayatollah Ali Khamenei, dismissed the approach, condemning the US as a “bully” imposing conditions rather than engaging in genuine talks. Nevertheless, Iran’s mission to the United Nations hinted at a willingness to discuss specific concerns, though not a complete dismantling of its nuclear program.
“If negotiations focus on addressing concerns about potential nuclear militarization, they may be considered,” the mission stated. “However, if the goal is to dismantle Iran’s peaceful nuclear program to claim a political victory, such talks will never take place.”
The 2015 nuclear agreement, brokered under Obama, had promised sanctions relief in exchange for Iran limiting its nuclear activities. While Tehran initially complied even after Trump’s withdrawal, it later scaled back its commitments. US intelligence estimates suggest Iran could develop a nuclear weapon within weeks if it pursued that path.
Source: Al Jazeera
BDST: 1127 HRS, MAR 10, 2025
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