Trump admin ends waiver allowing Iraq to buy Iranian electricity

The Trump administration recently made the decision to end a waiver that allowed the Iraqi government to purchase Iranian electricity, as part of the ongoing effort to cut off Iran’s profits. National Security Advisor Mike Waltz communicated this decision to Iraqi Prime Minister Mohammed Shia al-Sudani, emphasizing that it aligns with President Donald Trump’s “maximum pressure” campaign on Iran. The administration is determined to prevent Iran from acquiring a nuclear weapon.

Waltz commended the Iraqi Prime Minister’s efforts to achieve energy independence for Iraq and encouraged the government to welcome more western and U.S. energy companies into the country’s oil and gas sectors. He also urged Iraq to resolve its longstanding dispute with the Kurdistan Regional Government, which has hindered the flow of oil from the region to Turkey, consequently maintaining the region’s reliance on Iranian oil.

This move is part of a broader global strategy to increase oil supply and stabilize prices, ultimately aiming to deprive Iran and Russia of fuel profits. Iran has recently been able to enrich uranium to a near-weapons-grade level of 60%, posing a significant threat. The U.S. remains focused on pressuring Iran to change its behavior and adhere to international norms.

Former President Joe Biden had consistently renewed the sanctions waiver for Iraq until its expiration, providing some relief to the nation’s electricity supply. However, the latest decision to end the waiver could have significant implications for Iraq’s energy sector, potentially causing a loss of over 30% of its electricity energy.

The U.S. holds considerable leverage over Iraq, with $100 billion of the nation’s reserves held in the U.S. Washington could use this leverage to influence Iraq’s decisions, especially in light of Iran’s growing influence in the region. The U.S. military presence in Iraq, aimed at combatting ISIS, further underscores its strategic interests in the country.

In response to the escalating tensions, President Trump revealed that he had sent a letter to Iranian Supreme Leader Ayatollah Ali Khamenei, urging Iran to engage in negotiations to avoid military conflict. However, Khamenei dismissed these efforts, stating that Iran would not negotiate with “bullying countries.”

Iran currently exports a substantial amount of oil, but the U.S. is determined to drive its oil exports to zero. Efforts are also underway to end a sanctions waiver for the Chabahar port in Iran, a crucial trading gateway to the Middle East. The U.S. is also eyeing China, which is a major importer of Iranian oil, as the next target in its campaign to isolate Iran economically.

Overall, the decision to end the waiver for Iraqi purchases of Iranian electricity marks a significant escalation in the U.S. pressure campaign on Iran. The administration is determined to curb Iran’s influence and prevent it from obtaining nuclear weapons, even if it means imposing severe economic sanctions on key allies in the region.