US Ends Iraq’s Waiver To Pay Iran for Electricity in Renewed Pressure on Tehran
The US government has revoked a waiver that previously allowed Iraq to pay Iran for electricity imports, intensifying efforts to isolate Tehran economically. The decision, announced by a State Department spokesperson on Saturday, aligns with President Donald Trump’s renewed “maximum pressure” campaign aimed at cutting off Iran’s financial resources. The administration asserts that sanctions are necessary to curb Iran’s nuclear ambitions, limit its ballistic missile program, and stop its support for terrorist groups.
Since taking office in January, Trump has reinstated stringent measures against Iran, mirroring his first term when he withdrew the US from the Iran nuclear deal. Washington has sought to eliminate Iran’s access to global markets, particularly targeting its oil revenues, which the US says fund destabilizing activities in the region. Iran denies pursuing nuclear weapons, maintaining that its program is for peaceful purposes.
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The waiver’s expiration poses operational challenges for Iraq, which relies on Iranian electricity to meet energy demands. Farhad Alaaeldin, foreign affairs adviser to Iraqi Prime Minister Mohammed Shia al-Sudani, stated that Baghdad is exploring alternatives to avoid major disruptions. He emphasized that Iraq remains committed to energy security through domestic production and grid modernization.
US officials have long urged Iraq to reduce dependence on Iranian energy. They have also used negotiations over the waiver as leverage to push Baghdad toward resuming Kurdish crude oil exports via Turkey—a move that would stabilize oil markets while further isolating Iran. Read the full article for more on how this decision could reshape regional energy dynamics.
