On Saturday, March 8, the Trump administration did not renew a waiver that allowed Iraq to pay Iran for electricity. According to a U.S. State Department spokesperson, this move is part of President Donald Trump’s “maximum pressure” campaign against Tehran.
According to Reuters, the State Department spokesperson added that the decision not to renew the waiver after its expiration ensures that “we do not provide any economic or financial relief to [the Iranian regime].”
He emphasized that Trump’s campaign against the Iranian regime aims to end its nuclear threat, limit its ballistic missile program, and stop its support for terrorist groups.
One of Trump’s first actions upon returning to the presidency in January was reinstating the maximum pressure policy against the Iranian regime.
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The U.S. government has stated that its goal is to isolate the Iranian regime from the global economy and eliminate its oil export revenues to slow Tehran’s progress in developing nuclear weapons.
Washington has imposed numerous sanctions on Tehran due to its nuclear program and support for militant organizations, effectively preventing countries that trade with the Iranian regime from conducting business with the United States.
Increased Pressure on Baghdad
After reimposing energy sanctions on the Iranian regime in 2018, Trump granted waivers to several countries, including Iraq, to ensure energy supply for consumers. However, both his administration and Joe Biden’s administration repeatedly extended these waivers while urging Baghdad to reduce its dependence on electricity from the Iranian regime.
Sources familiar with the matter told Reuters that the U.S. has used the waiver review process as a tool to increase pressure on Baghdad to facilitate crude oil exports from Iraq’s Kurdistan region via Turkey.
Washington’s objective in this move is to boost global supply and control prices, allowing the U.S. to continue its efforts to curb Iran’s oil exports.
Meanwhile, the U.S. State Department spokesperson emphasized that Iraq’s dependence on Iranian electricity is not significant, stating that in 2023, electricity imports from Iran accounted for only four percent of Iraq’s total consumption.
