The Trump administration has allowed a waiver that permitted Iraq to pay Iran for electricity to expire, emphasizing a commitment to apply maximum economic pressure on Tehran. A State Department spokesperson indicated that this decision aims to prevent any financial relief for Iran as part of the broader strategy to address its nuclear ambitions.
According to the spokesperson, the administration's "maximum pressure" campaign seeks to eliminate Iran's "nuclear threat" and restrict its ballistic missile capabilities. The expiration of the waiver marks a significant step in reinforcing this policy, which has been in place since the U.S. withdrew from the Iran nuclear deal in 2018.
The U.S. government has consistently pushed for Iraq to lessen its reliance on Iranian energy sources. The spokesperson reiterated this call, labeling Iran as an "unreliable energy supplier" and urging the Iraqi government to expedite its transition to alternative energy sources.
Historically, waivers were granted to facilitate Iraq's energy needs, but the Trump administration has shifted its stance to isolate Iran economically. This change aligns with ongoing efforts to cut off Iranian oil export revenues, which are seen as crucial to Tehran's economy. The U.S. has also been encouraging increased oil exports from the Kurdish region, pressuring Baghdad to reduce its dependence on Iran.