Trump Administration Terminates Waiver for Iraqi Imports of Iranian Electricity

The Trump administration ended a waiver allowing Iraq to purchase Iranian electricity to strengthen its ‘maximum pressure’ campaign against Iran. National Security Advisor Mike Waltz encouraged Iraq to pursue energy independence and resolve disputes with the Kurdistan Regional Government. The situation reflects broader efforts to reduce Iranian oil profits amid concerns over their nuclear program.

The Trump administration has concluded a waiver permitting Iraq to purchase Iranian electricity, intensifying efforts to limit Iran’s financial gains. National Security Advisor Mike Waltz conveyed to Iraqi Prime Minister Mohammed Shia al-Sudani that this action aligns with President Trump’s approach of ‘maximum pressure’ on Iran, aimed at preventing the nation from developing nuclear weapons.

Waltz praised Iraq’s progress towards achieving energy independence and encouraged the integration of more Western and U.S. energy companies into its oil and gas markets. He also advised the Iraqi government to settle its long-standing conflicts with the Kurdistan Regional Government, which could help reduce Iraq’s dependency on Iranian oil supplies.

This initiative is part of a broader global effort to increase oil production and stabilize prices, thereby diminishing revenue for both Iran and Russia. Waltz reiterated the necessity for Iraq to collaborate with the Kurdistan Regional Government to resolve financial disputes and to appoint a coordinator to facilitate foreign investments in the country.

Initially, President Trump initiated the sanctions waiver when his administration commenced its strategy against Iran. The waiver solely pertained to electricity, as Iraq’s reliance on Iranian power has decreased significantly to just 4%. However, expanding restrictions to include gas could lead to a drastic reduction of over 30% of Iraq’s electricity output, according to Ahmad Moussa of Iraq’s Ministry of Electricity.

Former President Joe Biden opted to renew the waiver consistently until its termination on Saturday, while the U.S. holds substantial leverage over Iraq given that $100 billion of its reserves are held in American banks. Furthermore, around 2,500 U.S. troops remain stationed in Iraq, primarily to combat ISIS.

In the context of Iran’s nuclear aspirations, President Trump disclosed that he has written to Iranian Supreme Leader Ayatollah Ali Khamenei, urging negotiations or risk military action. Trump expressed his preference for a diplomatic resolution rather than conflict, stating, “There are two ways Iran can be handled – militarily, or you make a deal… I would prefer to make a deal.”

Experts indicate that Iran is currently enriching uranium up to 60%, nearing the threshold for military-grade levels. Meanwhile, Ayatollah Khamenei has firmly dismissed the prospect of negotiations with what he termed ‘bullying countries’. Under Trump’s order, the U.S. is aiming to curb Iran’s oil exports entirely while also considering sanctions on the Chabahar port, which India is developing as a trading hub in the region.

The conclusion of the waiver for Iraqi imports of Iranian electricity marks a significant escalation in the U.S. strategy against Iran, aligning with the ‘maximum pressure’ campaign. This shift entails increased diplomatic efforts to foster Iraq’s energy independence while attempting to limit Iran’s oil revenues. The situation emphasizes the complex geopolitical interplay regarding Iran’s nuclear ambitions and its economic standing in the region.

Original Source: www.foxnews.com