WASHINGTON: The US administration has decided to end the waiver that previously allowed Iraq to pay Iran for electricity, as part of President Donald Trump’s maximum pressure campaign against Tehran.
A State Department spokesperson said the decision to let Iraq’s waiver lapse upon its expiration “ensures we do not allow Iran any degree of economic or financial relief”.
He added that Trump’s campaign on Iran aims “to end its nuclear threat, curtail its ballistic missile programme and stop it from supporting terrorist groups”.
“We urge the Iraqi government to eliminate its dependence on Iranian sources of energy as soon as possible,” the spokesperson said. “Iran is an unreliable energy supplier.”
“Iraq’s energy transition provides opportunities for US companies, which are world-leading experts in increasing the productivity of power plants, improving electricity grids, and developing electricity interconnections with reliable partners,” the State Department spokesperson said.
The move aligns with Trump’s goals to curb Iran’s nuclear development, restrict its missile programme, and halt its support for militant groups.
Since assuming office in January, President Trump has intensified his pressure on Iran by imposing harsh sanctions aimed at isolating Tehran economically and reducing its oil export revenues, which are seen as crucial for Tehran’s nuclear aspirations.
It is pertinent to mention that Trump in his first term, pulled the US out of the Iran nuclear deal known as the Joint Comprehensive Plan of Action (JCPOA), a multinational agreement to stop Iran from developing nuclear weapons.
Iran has always denied pursuing nuclear weapons and says its programme is only for peaceful purposes.
Operational challenges for Iraq
Farhad Alaaeldin, foreign affairs adviser to Prime Minister Mohammed Shia al-Sudani has said the end of the waiver presents temporary operational challenges for the Iraqi government.
“The government is actively working on alternatives to sustain electricity supply and mitigate any potential disruptions,” Alaaeldin said.
“Strengthening energy security remains a national priority, and efforts to enhance domestic production, improve grid efficiency and invest in new technologies will continue at full pace,” he said.
Trump had granted waivers to several buyers to meet consumer energy needs when he reimposed sanctions on Iran’s energy exports in 2018.
“President Trump has been clear that the Iranian regime must cease its ambitions for a nuclear weapon or face maximum pressure,” said National Security spokesperson James Hewitt.
“We hope the regime will put the interests of its people and the region ahead of its destabilising policies.”
