Trump Administration Revokes Waiver on Iraqi Electricity Purchase from Iran

The Trump administration has revoked a waiver for Iraq to buy Iranian electricity, intensifying efforts to restrict Iran’s revenue flow. This decision aligns with the ‘maximum pressure’ strategy on Iran related to nuclear ambitions. National Security Advisor Mike Waltz urged Iraq to seek energy independence and settle disputes with the Kurdistan Regional Government to lessen reliance on Iranian oil, while maintaining U.S. leverage over Iraqi finances.

The Trump administration has terminated a waiver that permitted Iraq to purchase electricity from Iran, intensifying efforts to limit Iran’s economic gains. National Security Advisor Mike Waltz informed Iraqi Prime Minister Mohammed Shia al-Sudani that this decision aligns with President Trump’s “maximum pressure” strategy on Iran, aimed at obstructing their nuclear ambitions. Waltz applauded the Prime Minister’s pursuit of energy independence and encouraged increased participation from Western and U.S. energy enterprises in Iraq’s oil and gas sectors.

Furthermore, Waltz urged Iraq to resolve ongoing conflicts with the Kurdistan Regional Government, noting that continued reliance on Iranian oil compromises Iraq’s energy independence. This initiative is part of a broader campaign to enhance global oil supply and stabilize prices, simultaneously diminishing revenue for both Iran and Russia. The advisor highlighted the necessity for Iraq to settle financial disputes with U.S. energy firms and suggested the retention of an investment coordinator for potential U.S. investors in Iraq.

Originally, the sanctions waiver was established during Trump’s initial term as part of the administration’s stringent approach towards Iran. Currently, Iraq’s dependency on Iranian electricity has drastically decreased to only 4%. However, if similar sanctions are applied to gas used in power generation, Iraq’s electricity supply could plummet by over 30%, prompting the government to seek alternatives.

The waiver was routinely renewed by former President Biden until its expiration. The U.S. possesses considerable leverage over Iraq, holding approximately $100 billion of their reserves, which can be utilized to counteract Iran’s influence in Iraqi governance. American military forces are also stationed in Iraq to assist in combating the Islamic State of Iraq and Syria (ISIS).

Trump has expressed his intent to encourage negotiations with Iran over their nuclear program, indicating an openness to dialogue rather than military confrontation, while simultaneously warning of potential severe consequences if talks fail. Nuclear experts suggest Iran is nearing weapons-grade uranium levels, further intensifying diplomatic tensions. Iranians currently export around 1.5 million barrels of oil daily, but the U.S. aims to drive these exports down to zero under Trump’s directives. The administration is also aiming to curtail sanctions waivers related to the Chabahar port in Iran, critical for India’s investment in regional trading routes.

The decision to end the waiver for Iraqi purchases of Iranian electricity reinforces the Trump administration’s aggressive tactics against Iran. This strategy aims to bolster U.S. energy influence while curtailing Iran’s economic resources. The situation requires careful management by Iraq to avoid significant electricity shortages and ensure stability in its energy sector. As tensions remain high, the U.S. continues to explore means to limit Iranian oil exports and maintain regional security.

Original Source: www.foxnews.com