The Trump administration has ended Iraq’s waiver to buy Iranian electricity as part of the “maximum pressure” campaign to limit Iran’s economic resources. National Security Advisor Mike Waltz emphasized the need for Iraq to achieve energy independence and reduce reliance on Iran while addressing local disputes and enhancing cooperation with U.S. companies. This policy shift is intended to impact Iran’s oil exports significantly.
The Trump administration has officially terminated a waiver permitting Iraq to purchase electricity from Iran, intensifying efforts to reduce Iran’s economic benefits through the “maximum pressure” campaign. National Security Advisor Mike Waltz informed Iraqi Prime Minister Mohammed Shia al-Sudani that this policy shift aligns with President Trump’s objectives to deter Iran from potentially acquiring nuclear weapons.
Waltz commended the Iraqi government’s initiatives to achieve energy independence and encouraged collaboration with Western and U.S. energy companies to further develop Iraq’s oil and gas sectors. He also called upon the Iraqi government to settle its longstanding oil transit disputes with the Kurdistan Regional Government, which has hindered the flow of oil to Turkey and continued Iraq’s reliance on Iranian oil.
This strategy to bolster global oil supply aims to lower prices while simultaneously decreasing fuel profits for Iran and Russia. Waltz urged Iraq to resolve contractual conflicts with U.S. energy companies and proposed appointing an investment coordinator for facilitating U.S. investments in Iraq, as outlined in a summary of his discussion with the prime minister.
Initially, Trump introduced the sanctions waiver in his first term while applying maximum pressure on Iran. The waiver solely pertained to electricity, with Iraq’s dependency on Iranian electricity dwindling to approximately four percent. However, should this policy extend to gas, Iraq could expect to lose over thirty percent of its electricity supply, prompting discussions about alternative energy sources, according to Iraq’s Ministry of Electricity spokesperson Ahmad Moussa.
Former President Joe Biden had consistently renewed this waiver until its expiration on a recent Saturday. The U.S. maintains considerable influence over Iraq, holding $100 billion of its reserves. This military presence, with around 2,500 troops to assist in combating ISIS, adds to the pressure on Iraq amid Iran’s growing influence.
In a broader context, Trump previously communicated with Iranian Supreme Leader Ayatollah Ali Khamenei, urging negotiations to avert military action. Nuclear experts have indicated that Iran is accumulating uranium at a 60% enrichment rate, nearing the threshold for weapons-grade material. Recently, Khamenei remarked that Iran would not engage in talks with “bullying countries.”
Currently, Iran’s oil exports average 1.5 million barrels per day. The U.S. is acting under a recent executive order directing the secretaries of State and Treasury to work towards reducing Iran’s oil exports to zero. The U.S. is also evaluating steps to terminate a sanctions waiver concerning Iran’s Chabahar port, where India has invested $370 million for a trading gateway to the Middle East. Future targets may include China, which absorbs 90% of Iran’s oil exports.
The termination of the waiver allowing Iraq to buy Iranian electricity marks a significant shift in U.S. foreign policy aimed at stifling Iran’s economic capabilities. By encouraging Iraq to pursue energy independence and resolve internal disputes, the U.S. seeks to weaken Iran’s influence in the region while ensuring its own strategic interests are maintained. Ongoing negotiations and actions against Iran’s oil exports are critical facets of this larger geopolitical strategy.
Original Source: www.foxnews.com
