The Trump administration ended a waiver allowing Iraq to purchase Iranian electricity as part of its ‘maximum pressure’ campaign against Iran. National Security Advisor Mike Waltz encouraged Iraq’s energy independence and U.S. investments in local sectors while addressing disputes with Kurdistan. The shift could significantly affect Iraq’s power capabilities if gas imports are included. The U.S. aims to curb Iranian oil exports and enhance regional energy autonomy.
The Trump administration has officially terminated a waiver that permitted Iraq to purchase electricity from Iran, as part of its broader ‘maximum pressure’ strategy aimed at crippling Iran’s revenue streams. National Security Advisor Mike Waltz articulated this decision during discussions with Iraqi Prime Minister Mohammed Shia al-Sudani, emphasizing alignment with President Trump’s goal to thwart Iran’s nuclear armament efforts.
Waltz acknowledged Prime Minister al-Sudani’s push for Iraq’s energy independence and urged the inclusion of more western and U.S. energy firms in Iraq’s oil and gas industries. He also encouraged the Iraqi government to address the longstanding oil flow issues with the Kurdistan Regional Government, which has resulted in Iraq’s reliance on Iranian energy sources. This effort is part of a global initiative to stabilize oil supply and prices, while simultaneously undermining profits for Iran and Russia.
The Iraqi reliance on Iranian electricity has diminished to about 4% since the inception of the waiver during Trump’s first term. However, if this policy expands to gas supplies, Iraq could confront a significant power deficit, losing more than 30% of its electricity capacity. Ahmad Moussa, the spokesperson for Iraq’s Ministry of Electricity, confirmed that the nation is actively exploring alternatives to sustain its energy needs.
In contrast to Biden’s administration, which continuously renewed the waiver, Trump’s ending of the allowance manifests a shift toward increased pressure on the Iraqi government, leveraging the approximately $100 billion of Iraqi reserves held in the U.S. Furthermore, the presence of around 2,500 U.S. military personnel in Iraq remains as a strategic counter against ISIS and a measure of influence.
In recent communications, Trump expressed a willingness to negotiate with Iranian leaders, stressing the need for a diplomatic approach over military conflict. He stated, “There are two ways Iran can be handled – militarily, or you make a deal. I would prefer to make a deal…” Experts have indicated that Iran is rapidly approaching uranium enrichment levels that could facilitate nuclear weapons capabilities.
Currently, Iran’s oil exports stand at approximately 1.5 million barrels per day, but under Trump’s directive, measures are being enacted to decrease these exports significantly. The U.S. government is also considering the cessation of a sanctions waiver for Iran’s Chabahar port, which has seen substantial Indian investment aimed at enhancing trade routes to the Middle East. Future actions may focus on limiting China’s imports of Iranian oil, which constitute 90% of Iran’s oil outflow.
The termination of the electricity waiver for Iraq underscores the Trump administration’s commitment to applying maximum pressure on Iran to curtail its economic capabilities and nuclear ambitions. By advocating for Iraq’s energy independence and encouraging U.S. investment in the Iraqi energy sector, this strategy aims to reduce Iranian influence in the region. As diplomatic tensions continue, the U.S. seeks to limit Iran’s oil exports and negotiate from a position of strength.
Original Source: www.foxnews.com
