US rescinded Iraq’s waiver that permitted the importation of electricity from Iran
The administration under US President Donald Trump has decided against renewing a sanctions waiver that had previously enabled Iraq to purchase electricity from Iran. This move threatens Iraq's capability to fulfill its domestic energy requirements.
On Sunday, James Hewitt, Spokesman for the US National Security Council, announced that the decision to allow Iraq’s waiver to expire aligns with the directives of National Security Presidential Memorandum 2. This policy aims to reduce Iran’s crude oil exports to zero, reflecting a strategic stance against Iran’s economic activities.
A spokesperson has stated that the United States remains firm in its stance against providing any form of economic or financial relief to Tehran.
He asserted that the US president’s maximum pressure strategy aims to terminate Iran’s nuclear endeavors, limit its ballistic missile program, and halt its support for resistance groups opposing Israel.
Hewitt has issued a call to action for the Iraqi government, encouraging it to swiftly reduce its reliance on energy sources provided by Iran.
On Saturday, the Iraqi Electricity Ministry revealed that the government in Baghdad is actively pursuing a new exemption from the United States. Additionally, the ministry has implemented alternative strategies to address potential scenarios if a waiver is not granted.
Presently, around 80 percent of Iraq’s electricity production relies on natural gas, which results in a significant dependence on Iranian imports to maintain the nation’s power infrastructure.
In July 2022, Iraq formalized a five-year agreement with Iran to secure the importation of 400 megawatts of electricity.
In March 2024, a fresh agreement was secured to boost Iranian gas imports to 50 million cubic meters per day, with the deal estimated at an annual value of approximately $6 billion.
