US maintains Iran gas waiver but revokes power import exemption, urges Iraq to seek alternative energy sources

The US has upheld Iraq's waiver for Iranian gas imports but revoked its power import exemption. The decision poses challenges for Iraq's energy sector, which relies heavily on Iranian gas. The US urges Iraq to diversify energy sources and reduce dependence on Iran.

The United States has upheld its waiver allowing Iraq to import Iranian gas but has revoked its exemption for imported electricity, according to Farhad Alaaeldin, foreign affairs adviser to the Iraqi Prime Minister. Speaking to an Iraqi TV channel on Wednesday, Alaaeldin confirmed that while the gas waiver remains in place, Iraq can no longer rely on the exemption for power imports.

Iranian gas plays a crucial role in Iraq’s energy sector, with approximately 43% of the country’s electricity generated from gas imported from its eastern neighbor. The sudden cancellation of the power exemption could pose significant challenges for Iraq’s already strained energy grid.

Despite maintaining the gas waiver, the U.S. is urging Iraq to reduce its reliance on Iranian energy and explore alternative sources. "The American administration says ... diversify your import sources. Go to other countries," Alaaeldin stated.

This policy shift is part of broader U.S. efforts to limit Iran’s regional influence. As Iraq seeks to balance energy security with geopolitical pressures, securing new energy partnerships will be a priority in the coming months.

Copied