The Trump administration has rescinded a waiver allowing Iraq to buy Iranian electricity to intensify economic pressure on Iran, integral to the “maximum pressure” campaign. National Security Advisor Mike Waltz encouraged Iraq to pursue energy independence and resolve disputes with the Kurdistan Regional Government, signaling a strategic shift in U.S. foreign policy.
The Trump administration has terminated a waiver that permitted Iraq to purchase electricity from Iran, intensifying its measures against Iran as part of its ‘maximum pressure’ campaign. National Security Advisor Mike Waltz conveyed this termination to Iraqi Prime Minister Mohammed Shia al-Sudani, asserting it aligns with U.S. efforts to prevent Iran from developing nuclear weapons. Waltz commended the Prime Minister’s commitment to achieving energy independence while encouraging cooperation with Western energy firms.
Furthermore, Waltz addressed the ongoing disputes between the Iraqi government and the Kurdistan Regional Government. He emphasized the importance of resolving these issues to reduce Iraq’s dependency on Iranian oil, mentioning the historical flow restriction of Kurdish oil to Turkey. The initiative is part of a broader approach aimed at maintaining oil prices and restricting profits to Iran and Russia.
Waltz also encouraged Iraq to settle outstanding payments owed to U.S. energy companies and suggested appointing an investment coordinator dedicated to liaising with American businesses looking to enter Iraq’s oil and gas sector. Trump had initially issued this sanctions waiver during his first term, which applied solely to electricity, reflecting a significant reduction in Iraq’s reliance on Iranian power.
While Iraqi officials expressed concerns that expanded sanctions to include gas could threaten over 30% of their electricity output, the Biden administration previously renewed the waiver until its recent expiration. The United States holds considerable influence over Iraq due to the financial assets stationed there and its military presence in the country.
Trump has also made overtures to Iran, proposing negotiations to curb its nuclear ambitions. Following a letter sent to Iranian Supreme Leader Ayatollah Ali Khamenei, he highlighted two potential approaches to deal with Iran: militarily or through negotiation. However, Khamenei has publicly refrained from engaging with what he termed as “bullying countries.”
Current Iranian oil exports average 1.5 million barrels per day, but Trump’s recent executive order aims to drastically reduce these figures. In tandem, the U.S. is seeking to eliminate other sanctions waivers, such as those associated with Chabahar port, while potentially targeting China’s significant oil purchases from Iran as part of this campaign.
In summary, the Trump administration’s decision to end the sanctions waiver for Iraq exemplifies a strategic tightening of economic pressure on Iran. This move, aimed at enhancing Iraq’s energy independence and diminishing its reliance on Iranian oil, reflects the broader goals of preventing Iran from achieving nuclear capability and fortifying U.S. interests in the region. The developments signal a critical juncture in U.S.-Iraq relations amid ongoing tensions surrounding Iran’s nuclear agenda.
Original Source: www.foxnews.com
