The Trump administration has ended a waiver allowing Iraq to purchase Iranian electricity, reinforcing its ‘maximum pressure’ strategy against Iran. National Security Advisor Mike Waltz encouraged Iraq to diversify its energy sources while addressing disputes with the Kurdistan Regional Government. The implications of further sanctions could severely impact Iraq’s electricity supply, as it relies on Iran.
The Trump administration has recently terminated a waiver permitting Iraq to purchase Iranian electricity, intensifying efforts to limit Iran’s financial gains. National Security Advisor Mike Waltz communicated with Iraqi Prime Minister Mohammed Shia al-Sudani, emphasizing that this decision aligns with President Donald Trump’s “maximum pressure” strategy aimed at obstructing Iran’s nuclear ambitions.
In discussions with Prime Minister al-Sudani, Waltz spoke positively about Iraq’s pursuit of energy independence and advocated for increased participation of Western and U.S. energy firms in Iraq’s oil and gas sectors. He also encouraged resolution of ongoing conflicts with the Kurdistan Regional Government, which has been adversely impacting oil flows and contributing to Iraq’s dependency on Iranian energy.
This policy shift is part of a broader initiative to enhance global oil supplies while stabilizing prices, which simultaneously seeks to diminish profit streams for both Iran and Russia. The National Security Advisor urged Iraq to resolve disputes with the Kurdistan government and manage outstanding payments owed to U.S. energy companies.
President Trump originally granted the sanctions waiver to Iraq during his first term, allowing for electricity imports; reliance on Iranian electricity has since dropped to merely 4%. Yet, should further sanctions extend to gas for power generation, it threatens a 30% loss in Iraq’s electricity supply, as noted by Ahmad Moussa from Iraq’s Ministry of Electricity.
Former President Joe Biden had extended this waiver until its recent expiration. The U.S. exerts significant influence over Iraq, holding $100 billion of its reserves and maintaining a military presence of approximately 2,500 troops to assist in combating ISIS. This leverage is increasingly consequential amid Iran’s stronghold over Iraqi leadership.
In past statements, Trump has expressed his preference for negotiating rather than resorting to military action against Iran. He addressed the Iranian Supreme Leader Ali Khamenei in a letter, urging negotiations and suggesting that failure to agree could lead to military repercussions. He remarked, “There are two ways Iran can be handled – militarily, or you make a deal. I would prefer to make a deal…”
The Trump administration’s termination of the waiver for Iraqi electricity imports marks a pivotal shift in U.S. foreign policy aimed at pressuring Iran economically. This decision underscores the ongoing efforts to curb Iran’s influence and financial gains, while also promoting energy independence for Iraq. The complexities surrounding Iraq’s energy needs, alongside U.S. strategic interests, continue to shape the region’s geopolitical dynamics.
Original Source: www.foxnews.com
