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US declines to renew waiver allowing Iraq to buy energy from Iran

The New Region

Mar. 09, 2025 • 2 min read
Image of US declines to renew waiver allowing Iraq to buy energy from Iran Electricity transmission towers. Photo: AFP

"On March 8, the U.S. Department of State did not renew the waiver for Iraq to purchase Iranian electricity," a spokesperson of the US Embassy in Baghdad.

 

ERBIL, Kurdistan Region of Iraq – The US has declined to renew a sanctions waiver allowing Iraq to buy electricity from Iran as part of President Donald Trump’s “maximum pressure” campaign against Tehran, said a spokesperson of the US Embassy in Baghdad on Sunday, AFP reported.

 

"On March 8, the U.S. Department of State did not renew the waiver for Iraq to purchase Iranian electricity," the spokesperson said, adding that the decision "ensures we do not allow Iran any degree of economic or financial relief.”

 

The 120-day sanctions waiver came to an end on Saturday.

 

Iraq’s electricity ministry said Thursday that it had not received any official notice from the US about ending the waiver that permits Baghdad to purchase Iranian gas.

 

“Iraq has official channels and communication with the American side, and so far, this side has not informed the Iraqi side that it will stop granting the exemptions that allow Iraq to continue importing Iranian gas. Nothing official has reached us yet,” ministry spokesperson Ahmed Moussa told The New Region.

 

Moussa said the ministry is working to address any potential energy crisis if Iranian gas is completely cut off in the coming period.

 

“The Iraqi government is also working on diversifying gas import sources after signing a contract with Turkmenistan, as well as stopping gas flaring in Iraqi fields so that this gas can become the main fuel for power stations in the coming years,” he said.

 

Last month, the head of the parliamentary finance committee, Atwan al-Atwani, said that stopping Iranian gas imports threatens to collapse Iraq’s electricity system.

 

He argued that “the sanctions target Iraq, not Iran, as Iraq is the one suffering the consequences.” His remarks came during a meeting with Electricity Minister Ziad Ali Fadhil and senior ministry officials.

 

Iraq has long relied on imports of electricity and gas from Iran but has faced difficulties paying for these imports due to US sanctions. Previous US administrations have repeatedly renewed a waiver permitting Iraq to purchase Iranian electricity, as the country continues to struggle with providing power to its people.

 

Iranian gas supplies account for between 30 to 40 percent of Iraq’s energy needs. These imports are especially crucial during the summer months when temperatures can reach 50°C and energy demand peaks. 

 

 
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