The Trump administration has canceled Iraq’s exemption to purchase Iranian electricity, aiming to apply maximum pressure on Iran. This move seeks to impede Iran’s economic relief and restrict nuclear ambitions. Iraq faces immediate challenges in maintaining electricity supply, prompting efforts to boost local energy production. The U.S. government pressures Baghdad to reduce dependency on Iranian energy.
On Saturday, the Trump administration announced the cancellation of Iraq’s exemption for purchasing Iranian electricity, part of its ongoing “maximum pressure” strategy against Tehran. A U.S. State Department spokesperson emphasized that this decision prevents any economic relief for Iran, asserting that the campaign seeks to eliminate nuclear threats and Iran’s support for terrorism.
Since returning to office in January, President Trump has reinstated the “maximum pressure” policy, following his earlier withdrawal from the Iran nuclear deal, intended to curb Iran’s nuclear ambitions. The U.S. aims to sever Iran’s economic ties globally, particularly regarding oil revenues critical for its nuclear program development.
Despite Iran’s claims that its nuclear program is for peaceful purposes, this move poses immediate operational difficulties for Iraq. Farhad Al-Alaily, a foreign affairs advisor to Prime Minister Mohammed Shia’ al-Sudani, indicated that the government is actively seeking alternatives to maintain electricity supplies, prioritizing energy security and plans to enhance local production and efficiency.
The United States has imposed numerous sanctions on Tehran due to its nuclear initiatives and support for militant activities, putting any trade with Iran at risk of losing U.S. market access. James Hewitt from the U.S. National Security Council reiterated that Iran must abandon its nuclear ambitions or face increased pressure.
In 2018, temporary exemptions allowed several countries, including Iraq, to continue purchasing Iranian energy despite renewed U.S. sanctions. Both administrations, Trump and Biden, have extended this exemption, urging Baghdad to reduce its dependence on Iranian electricity sources swiftly, asserting that Iran is an unreliable provider.
The review of the exemption was reportedly used as leverage to negotiate Kurdish oil exports via Turkey, aimed at stabilizing oil prices and restricting Iranian oil exports. However, negotiations between the Iraqi government and the Kurdish region regarding oil exports continue to encounter significant challenges.
Officials stated that Iraq’s energy transition presents opportunities for U.S. companies specializing in enhancing electricity productivity and infrastructure, while Iranian electricity imports only accounted for 4% of Iraq’s total consumption in 2023, indicating a potential shift in energy reliance.
The elimination of Iraq’s exemption for purchasing Iranian electricity marks a critical step in the Trump administration’s strategy to exert pressure on Tehran. With immediate challenges ahead for Iraq, the government is focusing on enhancing domestic energy sources. The broader implications of these measures attempt to isolate Iran economically, while ensuring that alternative energy solutions are explored for a stable electricity supply in Iraq.
Original Source: www.jordannews.jo
