ERBIL, Kurdistan Region of Iraq - As tensions rise between the United States and Iran, Iraqi politicians and analysts warn of the potential economic, political, and security repercussions on Iraq. With Washington pushing to curb Tehran’s regional influence, concerns grow that Iraq could once again become a battleground for external conflicts.

The US State Department recently confirmed to The New Region that it has not renewed a waiver allowing Iraq to purchase electricity from Iran. The department urged the Iraqi government to reduce its reliance on Iranian energy sources, citing a presidential directive aimed at preventing Tehran from gaining financial relief.

Mukhtar al-Moussawi, a member of Iraq’s ruling Coordination Framework, said that any escalation between Washington and Tehran would have direct consequences for Iraq.

“There is no doubt that Iraq will be affected by any renewed tensions between Iran and the US,” Moussawi told The New Region. “This impact will be felt economically, politically, and in terms of security. Iraq has always sought to mediate and de-escalate tensions between the two sides.”

One of the immediate consequences, he warned, is Iraq’s ongoing electricity crisis. “With summer approaching, the loss of Iranian energy imports will have severe consequences for Iraqis,” he said. “If tensions continue to rise, security repercussions are inevitable, and Iraq will be the first to suffer.”

Al-Azm Alliance, a Sunni political coalition, cautioned against Iraq being drawn into a larger conflict between the US and Iran.

“A crisis anywhere in the region affects Iraq, as we have seen with events in Lebanon and Gaza,” said Azzam al-Hamdani, a senior leader in the coalition. “Any escalation between Iran and the US will have negative repercussions at all levels. The real fear is that Iraq could become the battleground for this conflict.”

Hamdani urged Iraq’s leaders to maintain a neutral stance. “Iraq must continue its balanced foreign policy and refuse to be drawn into any regional or international conflict,” he said. “If Iraq gets involved, it will be the biggest loser. All political factions must avoid any escalation, and the country must stand united in prioritizing national interests.”

Strategic analyst Ahmed al-Sharifi warned that increased tensions between Washington and Tehran could lead to a resurgence of armed group activity in Iraq.

“The escalation and tightening of US sanctions on Iran could push armed factions in Iraq to resume attacks on American interests as a way to pressure Washington,” Sharifi told The New Region.

He cautioned that such actions would carry significant risks. “If these groups resume military operations, the US could respond with force, targeting their leadership,” he said. “Iraq would suffer the most in such a scenario. The government must remain neutral and avoid being drawn into the conflict.”

In February, US President Donald Trump signed a memorandum restoring his “maximum pressure” policy against Iran and detailing a series of new economic measures against the Islamic republic.