The United States has refused to renew a key waiver that previously allowed Iraq to purchase electricity from Iran without violating U.S. sanctions, a U.S. official confirmed Sunday.
The decision is part of Washington’s broader “maximum pressure campaign” against Tehran.
The U.S. government has declined to renew a waiver that permitted Iraq to import electricity from Iran, effectively ending an exemption that shielded Baghdad from sanctions linked to trade with Tehran.
The previous waiver expired on Saturday, and the U.S. Department of State did not extend it, the U.S. embassy in Baghdad confirmed in a statement.
The move aligns with the Trump administration’s efforts to isolate Iran economically and politically, targeting its nuclear ambitions, ballistic missile development, and alleged support for terrorist organizations.
“The decision is part of President Donald Trump’s maximum pressure campaign on Iran, which is designed to end Iran’s nuclear threat, curtail its ballistic missile program, and stop it from supporting terrorist groups.”
The U.S. has long urged Iraq to reduce its reliance on Iranian energy and pursue self-sufficiency in electricity production. Washington reaffirmed its support for Iraq’s efforts to achieve energy independence.
“We urge the Iraqi government to eliminate its dependence on Iranian sources of energy as soon as possible, and welcome the Iraqi Prime Minister’s commitment to achieve energy independence.”
Iraq has historically relied on Iranian electricity and gas imports to meet domestic energy demands, particularly during peak summer months.
The expiration of the waiver raises concerns over potential power shortages and the broader economic and political ramifications for Baghdad as it navigates strained U.S.-Iran relations.
The Iraqi government has yet to formally respond to the decision, but the move is expected to increase pressure on Baghdad to seek alternative energy sources while managing its delicate diplomatic ties with both Washington and Tehran.
