The Trump administration has revoked a waiver that allowed Iraq to buy electricity from Iran, intensifying its maximum pressure campaign. National Security Advisor Mike Waltz emphasized energy independence for Iraq, urged cooperation with the Kurdistan Regional Government, and highlighted U.S. energy investment. This decision aims to limit Iranian profits and maintain regional stability amid nuclear proliferation concerns.
The Trump administration has revoked a waiver that permitted Iraq to purchase electricity from Iran, aligning with the broader strategy of the “maximum pressure” campaign aimed at limiting Iran’s financial resources. National Security Advisor Mike Waltz conveyed this decision during discussions with Iraqi Prime Minister Mohammed Shia al-Sudani, emphasizing that it supports President Trump’s objective to prevent Iran from developing nuclear weapons.
Waltz commended the Iraqi government’s pursuit of energy independence and encouraged the involvement of more Western and U.S. energy companies in Iraq’s oil and gas sectors. Additionally, he urged Iraq to settle its long-standing disputes with the Kurdistan Regional Government, which has significantly hindered oil flows between the Kurdish region and Turkey, thus perpetuating dependency on Iranian oil.
This initiative represents a global effort to increase oil supplies and stabilize prices, simultaneously impairing Iran and Russia’s revenue from oil sales. The readout from Waltz’s communication also highlighted the need for Iraq to address contract disputes with the Kurdistan Regional Government and suggested appointing an investment coordinator to facilitate U.S. investments in Iraq.
The sanctions waiver for Iraqi electricity was originally instituted under President Trump during his initial term, reflecting efforts to reduce Iraq’s reliance on Iranian energy, which has reportedly declined to 4%. However, should the ban extend to gas for power plants, it could severely impact Iraq’s electricity production by over 30%.
Former President Joe Biden continued this waiver, which expired recently. The U.S. wields considerable influence over Iraq, accounting for a significant portion of its reserves and maintaining a military presence of approximately 2,500 personnel to combat ISIS.
Trump reiterated his stance on Iran’s nuclear negotiations, indicating that he had written to Iranian Supreme Leader Ayatollah Ali Khamenei, expressing a preference for a diplomatic resolution over military action. Meanwhile, experts note that Iran is enriching uranium to near weapons-grade levels, raising concerns about nuclear proliferation.
Under Trump’s recent executive directive, the U.S. aims to promote a campaign to stem Iran’s oil exports, with plans to potentially include sanctions on the Chabahar port, complemented by targeting China, which consumes a significant proportion of Iran’s oil exports.
The Trump administration’s termination of the waiver for Iraqi electricity purchases from Iran represents a continuation of its maximum pressure approach against Iran. By encouraging Iraqi energy independence and urging resolution of regional disputes, the U.S. aims to limit Iranian influence and impede its oil revenues, while addressing concerns regarding its nuclear ambitions. The interplay of U.S.-Iraq relations, energy policies, and geopolitical dynamics remains crucial in this context.
Original Source: www.foxnews.com
