US ends Iraq’s waiver for Iranian electricity imports

Shafaq News/ The US administration has ended Iraq’s waiver to purchase electricity from Iran, a State Department spokesperson said on Sunday, reinforcing Washington’s "maximum pressure" campaign against Tehran.

The decision "ensures we do not allow Iran any degree of economic or financial relief," the spokesperson told Reuters.

President Trump’s maximum pressure campaign aims “to end its nuclear threat, curtail its ballistic missile program and stop it from supporting terrorist groups", the official added.

The US State Department had previously urged Iraq to move away from Iranian energy supplies "as soon as possible."

Iraq’s Energy Dependence on Iran

Iraq currently generates around 27,000 megawatts of electricity through gas-powered plants, but production can drop to 17,000 megawatts at times, leaving the country with chronic shortages. To meet demand—estimated at 40,000 megawatts for full-day coverage—Baghdad has relied on Iranian gas imports, protected by a US sanctions waiver that Washington had renewed periodically.

However, with Trump’s return to office, his administration has pledged to reimpose strict economic measures against Iran. As a result, the Iraqi government requested a waiver extension from the new administration, Prime Minister Mohammed Shia al-Sudani said in a recent interview with Asharq.

Iraq’s Plan to End Iranian Energy Imports

PM Al-Sudani has outlined a plan to eliminate Iraq’s reliance on Iranian energy by 2028. "There will be clear energy independence," he said, adding, "Ultimately, we need this waiver to continue throughout this transition period. Meanwhile, we have started energy interconnection projects with neighboring countries as part of a broader regional integration strategy."

The latest US stance follows a recent phone call between US Secretary of State Marco Rubio and Iraqi PM Al-Sudani, in which they discussed Iran’s influence in the region. Rubio reportedly urged Baghdad to "achieve energy independence."