The Trump administration has canceled the exemption allowing Iraq to purchase Iranian electricity as part of its maximum pressure strategy against Iran. The State Department emphasized this decision aims to prevent economic relief for Iran and enhance Iraq’s energy independence. Iraqi officials are seeking alternatives to ensure stable electricity supplies amidst potential operational challenges.
On Saturday, the Trump administration officially terminated the exemption that permitted Iraq to pay for Iranian electricity, reinforcing its overarching “maximum pressure” campaign against Tehran. A spokesperson for the U.S. State Department affirmed that this decision seeks to prevent Iran from gaining any economic or financial respite.
The spokesperson emphasized that the objective of Trump’s strategy includes dismantling Iran’s nuclear threat, restraining its ballistic missile capabilities, and ceasing its support for terrorist entities. Upon resuming his presidency in January, Trump rejuvenated the “maximum pressure” policy, which had previously begun following his withdrawal from the Iran nuclear deal during his first term.
This renewed initiative aims to isolate Iran economically and stifle its oil revenues to hinder its nuclear weapons development aspirations. Iran has consistently refuted allegations of pursuing nuclear arms, asserting that its nuclear efforts are intended solely for peaceful purposes.
According to Farhad Al-Alaily, foreign affairs advisor to Iraqi Prime Minister Mohammed Shia’ al-Sudani, the cessation of the exemption could result in “temporary operational challenges” for Iraq. Nevertheless, Al-Alaily communicated to Reuters that the Iraqi government is proactively seeking alternatives to secure electricity supplies and reduce potential disruptions, maintaining energy security as a national priority.
Washington has enacted a range of sanctions against Tehran due to its nuclear activities and support for militant organizations. Such sanctions place countries engaging in trade with Iran at a risk of losing access to U.S. markets. James Hewitt of the U.S. National Security Council noted, “President Trump has been clear that the Iranian regime must give up its ambitions to acquire nuclear weapons or face the policy of maximum pressure.”
In 2018, Trump reinstated sanctions against Iranian energy exports linked to its nuclear ambitions and Middle Eastern interventions but previously granted temporary exemptions to several countries—including Iraq—to allow the purchase of Iranian energy. Throughout both the Trump and Biden administrations, these exemptions have been renewingly granted, accompanied by pressures directed at Baghdad to mitigate its reliance on Iranian electricity.
The State Department spokesperson reiterated that the U.S. urges Iraq to rapidly eliminate its dependence on Iranian energy, asserting that “Iran is an unreliable energy supplier.” Additionally, reports indicate that the U.S. government leveraged the exemption review to push Baghdad to endorse Kurdish oil exports via Turkey, aiming to stabilize global market supplies and enhance the U.S.’s efficacy in curtailing Iranian oil sales.
While negotiations between Iraq and the Kurdish region for resuming oil exports face numerous challenges, the State Department spokesperson also highlighted that Iraq’s transition in energy could present opportunities for U.S. enterprises, recognized for their excellence in increasing power plant productivity and enhancing electricity infrastructures. Furthermore, it was noted that in 2023, Iranian electricity imports represented a mere 4% of Iraq’s total electricity consumption.
In summary, the Trump administration’s decision to revoke Iraq’s exemption for purchasing Iranian electricity forms a crucial part of its ‘maximum pressure’ strategy against Iran, aimed at disrupting its nuclear ambitions. While this move poses short-term challenges for Iraq, the government seeks alternative solutions to maintain energy security. The U.S. continues to promote energy independence for Iraq and leverage its position to press for broader economic isolation of Iran.
Original Source: www.jordannews.jo
