The Trump administration has ended a waiver for Iraq to buy Iranian electricity to restrict Iran’s profits in line with a ‘maximum pressure’ campaign. National Security Advisor Mike Waltz encouraged Iraq’s energy independence and collaboration with U.S. companies, while addressing disputes with the Kurdistan Regional Government. The U.S. seeks to minimize Iranian economic influence, especially considering its nuclear ambitions and considerable oil exports.
The Trump administration has revoked a waiver allowing Iraq to purchase Iranian electricity as part of a broader strategy to restrict Iranian profits amidst ongoing tensions regarding nuclear weapons. National Security Advisor Mike Waltz communicated this policy shift to Iraqi Prime Minister Mohammed Shia al-Sudani, aligning it with President Trump’s “maximum pressure” campaign aimed at curtailing Iran’s influence.
Waltz acknowledged the Iraqi government’s pursuit of energy independence and encouraged collaboration with U.S. energy companies in Iraq’s oil and gas sectors. Moreover, he stressed the necessity for Iraq to resolve disputes with the Kurdistan Regional Government to diminish reliance on Iranian oil. This aligns with global initiatives to increase oil supplies and control prices, impacting both Iran and Russia economically.
In addressing energy issues, Waltz recommended that Iraq appoint an investment coordinator to facilitate U.S. business operations after indicating Iraq’s challenges without Iranian gas, which currently supplies over 30% of its electricity. The sanctions waiver initially implemented by Trump has shifted under Biden, impacting Iraq’s energy landscape, with current U.S. financial leverage over Iraq stemming from the nation’s $100 billion reserves held in American banks.
Former President Trump expressed a preference for a diplomatic resolution with Iran as opposed to military conflict regarding its nuclear ambitions. This comes at a time when Iranian uranium enrichment is nearing potentially weapon-grade levels. Meanwhile, Iran continues to export significant oil amounts, but the U.S. aims to drive these exports to zero through strategic sanctions, targeting countries like China that heavily trade with Iran.
Efforts to curb Iran’s influence extend beyond electricity to include crucial developments like the Chabahar port, where Indian investments enhance Iran’s trade potential in the region, highlighting the complex dynamics at play in U.S.-Iran-Iraq relations.
The termination of Iraq’s waiver to purchase Iranian electricity exemplifies the Trump administration’s intensified measures against Iran as part of the ‘maximum pressure’ campaign. The U.S. is urging Iraq towards energy independence, while leveraging financial influence amidst Iran’s critical nuclear developments. The overall strategy is designed to diminish Iran’s economic viability and strengthen strategic partnerships within the region, posing geopolitical challenges.
Original Source: www.foxnews.com
