Trump Ends Iraq’s Waiver For Iranian Electricity Purchases

The Trump administration has taken a significant step in its renewed “maximum pressure” campaign against Iran by allowing Iraq’s waiver to purchase Iranian electricity to expire. This strategic decision, announced by a State Department spokesperson on Saturday, aligns with President Trump’s broader foreign policy objectives toward Tehran since his return to office in January 2025.

President Donald Trump has wasted no time in reinstating his signature “maximum pressure” campaign against Iran after returning to the White House. This approach aims to address multiple concerns regarding Iran’s activities, including its nuclear program, ballistic missile development, and support for various militant groups across the Middle East. By allowing Iraq’s waiver to lapse, the administration seeks to ensure Iran receives no economic or financial relief that could fund these activities.

The decision represents a continuation of Trump’s first-term policy, when he withdrew the United States from the multinational Iran nuclear deal. The administration maintains that isolating Iran economically, particularly by targeting its oil export revenues, is essential to impede Tehran’s alleged pursuit of nuclear weapons a claim Iran consistently denies, insisting its nuclear program serves peaceful purposes only.

For Iraq, the expiration of this waiver presents significant immediate challenges. Farhad Alaaeldin, foreign affairs adviser to Iraqi Prime Minister Mohammed Shia al-Sudani, acknowledged these “temporary operational challenges” while emphasizing that the government is actively developing alternatives to maintain electricity supply and minimize disruptions to Iraqi citizens.

The State Department has downplayed potential impacts, claiming that in 2023, electricity imports from Iran constituted only 4% of Iraq’s total electricity consumption. Nevertheless, the administration has urged Baghdad to expedite efforts to eliminate its dependence on Iranian energy sources, characterizing Iran as “an unreliable energy supplier.”

This policy shift appears to serve multiple strategic objectives beyond simply pressuring Iran. According to sources, the U.S. has used the waiver review process partly to pressure Baghdad into allowing Kurdish crude oil exports via Turkey, potentially increasing global market supply and maintaining price stability. This would give the U.S. greater flexibility in its efforts to restrict Iranian oil exports.

The move also opens opportunities for American companies to participate in Iraq’s energy transition. The State Department highlighted potential roles for U.S. firms in improving power plant productivity, enhancing electricity grid infrastructure, and developing interconnections with “reliable partners” suggesting an economic component to this foreign policy decision.

National Security spokesperson James Hewitt reinforced the administration’s position, stating, “President Trump has been clear that the Iranian Regime must cease its ambitions for a nuclear weapon or face Maximum Pressure. We hope the regime will put the interests of its people and the region ahead of its destabilizing policies.”

As Iraq works to strengthen its energy security and reduce foreign dependencies, this policy shift marks another significant development in the complex web of Middle Eastern geopolitics and U.S. foreign policy in the region.

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