The Trump administration has ended a waiver permitting Iraq to purchase Iranian electricity as part of its maximum pressure campaign against Iran. National Security Advisor Mike Waltz urged Iraq to pursue energy independence and resolve oil disputes with the Kurdistan Region. The U.S. maintains significant influence over Iraq, which is crucial amid Iran’s nuclear advancements.
The Trump administration discontinued a waiver which allowed Iraq to procure Iranian electricity, heightening efforts to limit Iran’s financial gains. National Security Advisor Mike Waltz informed Iraqi Prime Minister Mohammed Shia al-Sudani that this decision aligns with President Trump’s ‘maximum pressure’ campaign aimed at thwarting Iran’s potential nuclear ambitions. Waltz commended the Prime Minister’s steps toward energy independence and urged engagement from Western and U.S. energy sectors in Iraq’s oil and gas industries.
Waltz also emphasized the importance of resolving disputes between the Iraqi government and the Kurdistan Regional Government, where interruptions in oil exports to Turkey have reinforced Iraq’s reliance on Iranian oil. This initiative aims to augment global oil supply while maintaining price stability, thereby diminishing profits for both Iran and Russia. He suggested Iraq appoint an investment coordinator to facilitate engagement with U.S. enterprises.
Initially introduced by Trump during his presidency, the waivers exclusively covered electricity, a sector in which Iraq’s reliance on Iran has significantly decreased to merely 4%. However, expanding this policy to natural gas would have dire consequences for Iraq’s energy availability, risking a loss of over 30% of its electricity, as noted by Ahmad Moussa from Iraq’s Ministry of Electricity.
Former President Biden had maintained this waiver until its termination. The U.S. retains considerable influence over Iraq, with $100 billion of its reserves held in American financial institutions, and a military presence of approximately 2,500 personnel in Iraq to combat ISIS.
Previously, Trump expressed hope for a negotiation with Iranian Supreme Leader Ayatollah Ali Khamenei, stating that military options could lead to detrimental outcomes for Iran. Amidst ongoing uranium enrichment, experts note that Iran is dangerously close to achieving weapons-grade supply levels. Despite these advances, Khamenei firmly rejected negotiations with ‘bullying countries.’
Under Trump’s new executive actions, the U.S. endeavored to stifle Iran’s oil exports, currently averaging 1.5 million barrels daily. The administration is also aiming to terminate the sanctions waiver for Iran’s Chabahar port, resulting in diminished economic ties with India, which previously invested significantly in the area. Future initiatives may target China, which accounts for 90% of Iran’s oil exports.
The discontinuation of the waiver for Iraqi electricity purchases from Iran represents an intensified strategy by the Trump administration to economically isolate Iran. This approach seeks to bolster Iraq’s energy independence while reducing Iranian influence. The U.S. continues to exert financial and military leverage to support its policies, pushing for negotiations over military actions regarding Iran’s nuclear ambitions. The outcomes of these efforts could reshape relations within the region and further impact global oil markets.
Original Source: www.foxnews.com
