Iraq issues caution to the US regarding the potential collapse of its power grid if gas supplies from Iran are interrupted

Atwan Al-Atwani, the chairman of the Iraqi parliament’s finance committee, announced on Sunday his warning to the United States’ senior diplomat in Baghdad, cautioning that Iraq could confront significant economic instability if the U.S. opts to revoke a waiver permitting Iraq to import natural gas from Iran.

In a development following the U.S. government’s announcement to rescind a sanctions waiver permitting Iraq to import electricity from Iran, Atwani issued a statement just hours later.

Experts have downplayed the significance of the announcement, noting that Iraq’s direct electricity imports from Iran constitute a mere 4% of its overall power requirements.

This development occurs against the backdrop of US President Donald Trump’s attempts to reignite his “maximum pressure” strategy on Iran. The campaign aims to compel Iran to make political and military concessions by intensifying pressure on its energy sector.

During a meeting with Daniel Rubinstein, the US chargé d’affaires in Baghdad, Atwani asserted that Iraq lacks viable alternatives to Iranian gas for powering its electricity plants. This dependency is particularly pronounced during the intense heat of the summer months, when electricity demand surges across much of the Arab nation.

He informed Rubinstein that Iraq’s energy infrastructure would face significant challenges without the supply of Iranian gas, particularly during the summer months, as there are currently no immediate alternative sources available.

In a recent statement, it was reaffirmed that Iraq’s procurement of natural gas from Iran remains exempt from United States sanctions.

In light of the impending expiration of the U.S. waiver permitting Iraq to import gas from Iran, a meeting was convened between representatives Atwani and Rubinstein.

Iraq is significantly dependent on Iran for fulfilling approximately one-third of its electricity needs. This dependence stems from the fact that several major power stations, which supply electricity to the capital city of Baghdad as well as central and southern regions of Iraq, largely operate on natural gas imported from Iran.