Iraq warns US of power grid collapse if Iranian gas imports halt

Shafaq News/ Cutting off Iranian gas imports could trigger a collapse of Iraq’s power grid this summer, Iraqi parliamentary finance committee chairman Atwan Al-Atwani warned in a statement.

In a meeting with US Ambassador to Iraq Daniel Rubinstein, discussions focused on US sanctions and their impact on Iraq’s electricity sector, particularly as the waiver allowing Iranian gas imports nears expiration.

Al-Atwani stressed the need for continued dialogue to maintain stable bilateral relations, and urged the US to extend sanctions waivers after their suspension by President Donald Trump’s administration.

“Without Iranian gas, Iraq’s power infrastructure would face severe strain, especially in the summer, as no immediate alternatives are available,” Al-Atwani said, acknowledging the government’s efforts toward energy independence, but noted that gas investment projects will take years to become operational.

According to the statement, natural gas imports remain exempt from US sanctions for now.

The lawmaker also urged the US Treasury Department to reconsider sanctions on Iraqi banks, arguing that they have disrupted economic stability despite Iraq’s progress in compliance and financial transparency.

In turn, the US ambassador expressed understanding of these concerns and pledged to relay Iraq’s position to Washington.