US cancels Iraq’s exemption from importing Iranian electricity as part of “maximum pressure” campaign, Iraq seeks alternatives
The US State Department announced that the administration of President Donald Trump has decided to end the exemptions that allowed Iraq to buy electricity from Iran, as part of its campaign to exert “maximum pressure” on Tehran.
A ministry spokesman explained that this step aims to prevent Iran from achieving any economic or financial gains, stressing that the US administration’s policy towards Iran aims to end its nuclear threat.
Trump reimposes ‘maximum pressure’ policy
The Trump administration’s decision came as part of the re-implementation of the “maximum pressure” policy, one of the first steps he took after taking office for a second time in January 2025.
In his first term, Trump withdrew from the multilateral Iranian nuclear agreement, which was aimed at preventing Iran from developing nuclear weapons.
Through this policy, the United States seeks to isolate Iran economically and stop its oil revenues in order to undermine its ability to develop any military nuclear program. However, Iran denies these accusations and confirms that its nuclear program is intended for peaceful purposes.
Iraq faces challenges after suspension of exemption
The US decision sparked reactions in Iraq, where the Iraqi prime minister’s foreign affairs advisor, Farhad Alaaldin, said that ending the US waiver would create “temporary operational challenges” for the Iraqi energy sector.
He stressed that the Iraqi government is working hard to find alternatives to ensure the continuity of electricity supplies and reduce any disturbances that may result from the American decision.
He also stressed that energy security is a national priority, and that Iraq is continuing its efforts to improve local production, enhance the efficiency of the electricity grid, and invest in modern technology as quickly as possible.
Alaa El-Din explained that Iraq’s strategic goal remains to achieve self-sufficiency in the energy sector.
Washington sees the Iraqi energy sector as an opportunity for American companies specializing in developing electricity networks and enhancing the efficiency of power plants.
Reuters quoted the US State Department spokesman as saying that US companies, as among the most experienced in the world, can play a major role in improving the performance of the Iraqi electricity sector and developing electricity interconnection projects with other countries that enjoy greater stability.
Although Iraq relies in part on electricity imports from Iran, the US official downplayed the impact, noting that these imports accounted for only 4% of Iraq’s total electricity consumption in 2023.
This indicates that this shortage can be compensated for by improving local production and searching for alternative energy sources.
