U.S. fails to renew Iraq’s waiver for electricity purchases from Iran

March 9, 2025 - 13:11

TEHRAN - The U.S. government has not renewed Iraq’s sanctions waiver for purchasing electricity from Iran, a move aimed at increasing economic pressure on Tehran.

According to Tasnim News Agency, the U.S. State Department confirmed on Saturday that the waiver, which had allowed Iraq to continue importing electricity from Iran despite sanctions, was not extended upon its expiration. A spokesperson for the State Department said the decision ensures that Iran does not receive any economic or financial relief.

Washington first imposed sanctions on Iran’s energy exports in 2018, citing Tehran’s nuclear program and what it described as Iranian interference in the Middle East. However, the U.S. granted waivers to certain buyers to help them meet their energy needs. While both the Trump and Biden administrations extended these waivers multiple times, Washington repeatedly urged Baghdad to reduce its reliance on Iranian electricity. The State Department spokesperson reiterated this stance on Saturday, stating that the U.S. expects Iraq to end its dependence on Iranian energy as soon as possible, calling Iran an "unreliable energy source."

To downplay the impact of the move, the official noted that in 2023, electricity imports from Iran accounted for only 4% of Iraq’s total power consumption.

A U.S. official had previously stated that Secretary of State Antony Blinken could modify or revoke existing waivers while working with the Treasury Department on efforts to cut Iran’s oil exports to zero.

Meanwhile, Iraq’s Minister of Electricity denied receiving any formal notification from Washington regarding the suspension of the waivers, which allow Baghdad to import natural gas from Iran. Iraqi Electricity Ministry spokesperson Ahmed Moussa also stated that Iraq maintains official channels of communication with U.S. officials, and no formal notice has been issued regarding the waiver’s cancellation. He added that the ministry is preparing for any potential energy crisis if Iranian imports are completely halted in the future.

Former U.S. President Donald Trump recently reiterated his support for the "maximum pressure" campaign against Iran, calling it one of his key foreign policy achievements in the Middle East. Speaking at an event in Miami, Trump said, “In the Middle East, I reinstated my maximum pressure policy against Iran, a strategy designed to bring peace.”

Trump first introduced the maximum pressure policy during his presidency after withdrawing from the 2015 nuclear deal. The strategy aimed to force Iran into negotiations through economic sanctions but ultimately failed to achieve that goal. Despite Trump’s claim of authorship, the policy has continued before and after his administration.

Following Trump’s remarks, Iranian Deputy Foreign Minister Abbas Araqchi stated in a press conference with his Russian counterpart that Tehran’s position on nuclear negotiations remains unchanged. "We will not negotiate under pressure, threats, or sanctions," he said, ruling out direct talks with the U.S. as long as the maximum pressure campaign continues.

Two days earlier, Iranian Foreign Ministry spokesperson Esmail Baghaei described recent comments by the U.S. Treasury Secretary about continuing the maximum pressure strategy as evidence of Washington’s ongoing hostility toward the Iranian people. He called the policy a blatant violation of international law and a crime against humanity.

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