The Trump administration has ended a waiver that allowed Iraq to purchase Iranian electricity, marking a significant move in its “maximum pressure” campaign against Iran. National Security Advisor Mike Waltz encouraged Iraq to pursue energy independence and improve relations with Western energy companies while resolving disputes with the Kurdistan Regional Government. The U.S. aims to diminish Iranian oil profits and strengthen Iraq’s energy sector.
The Trump administration has terminated a waiver allowing Iraq to purchase Iranian electricity, intensifying its campaign dubbed “maximum pressure” on Iran. National Security Advisor Mike Waltz conveyed this decision to Iraqi Prime Minister Mohammed Shia al-Sudani, reinforcing efforts to curb Iran’s revenue and nuclear capabilities. Waltz commended Iraq’s pursuit of energy independence and urged increased collaboration with Western energy firms within its oil and gas sectors.
Additionally, Waltz encouraged Iraq to resolve its longstanding disputes with the Kurdistan Regional Government, particularly concerning oil exports to Turkey, as this would reduce dependency on Iranian oil. The U.S. aims to enhance global oil supply, thereby weakening Iran and Russia’s financial gains from fuel sales.
The waiver previously facilitated Iraqi dependence on Iranian electricity, which has dropped to merely 4%. However, should Iran’s gas supplies be impacted, Iraq could face a staggering loss of over 30% of its electricity production. The Ministry of Electricity’s spokesperson, Ahmad Moussa, acknowledged that the nation is actively seeking alternatives.
Former President Joe Biden had regularly renewed this waiver until its expiry. The U.S. holds significant financial leverage over Iraq, bolstered by $100 billion of Iraqi reserves held in American banks and a military presence of about 2,500 personnel engaged in antiterrorism operations against ISIS.
Trump had engaged with Iranian Supreme Leader Ayatollah Ali Khamenei, advocating for diplomatic negotiations over military options. Trump stated his preference for amicable negotiations, emphasizing the potential consequences if military action becomes necessary. Concurrently, analysts have raised concerns about Iran’s uranium enrichment, which is nearing weapons-grade levels.
Currently, Iran exports approximately 1.5 million barrels of oil daily. Following Trump’s recent executive actions, U.S. officials aim to reduce Iran’s oil exports to zero. Moreover, efforts to rescind the sanctions waiver for Iran’s Chabahar port, a significant trading hub funded by India, are underway, with upcoming initiatives potentially targeting China, the primary purchaser of Iranian oil.
In summary, the Trump administration’s withdrawal of the waiver permitting Iraqi electricity purchases from Iran underscores a broader strategy aimed at undermining Iran’s economic stability and nuclear ambitions. The U.S. encourages Iraq to pursue energy independence and collaborate with western energy firms while addressing internal disputes affecting oil exports. These efforts not only seek to diminish Iran’s economic clout but also fortify Iraq’s energy sector amidst an ongoing regional geopolitical struggle.
Original Source: www.foxnews.com
