Overview

• The United States has declined to renew Iraq's sanctions waiver, which previously allowed the country to import electricity from Iran.
• This move is part of President Trump's reinstated 'maximum pressure' strategy aimed at curbing Iran's nuclear ambitions and regional influence.
• Iraq, heavily reliant on Iranian energy imports, has been urged by the U.S. to reduce its dependence on Iran and diversify its energy sources.
• Iraq has prepared contingency plans, including increasing domestic natural gas production, importing electricity from neighboring countries, and recovering flared gas.
• The U.S. emphasized that Iranian electricity imports contribute minimally to Iraq's power supply, which continues to face chronic shortages due to decades of infrastructure challenges.