Trump Administration Ends Iraq’s Exemption for Iranian Electricity Payments

The Trump administration has canceled Iraq’s exemption for purchasing Iranian electricity as part of a broader strategy to apply maximum pressure on Tehran. This move aims to curb Iran’s nuclear capabilities and economic relief. The Iraqi government faces challenges but is working toward energy independence while the U.S. encourages greater energy security and reduces reliance on Iranian energy.

On Saturday, the Trump administration terminated the exemption that allowed Iraq to pay for Iranian electricity, implementing its “maximum pressure” campaign against Tehran, as per a spokesperson from the U.S. State Department. This decision is aligned with the administration’s objective to prevent Iran from gaining economic relief, ultimately aiming to curb Iran’s nuclear threat, ballistic missile development, and support for terrorism.

Former President Trump reinstated this pressure policy upon his return to office in January, following his withdrawal from the Iran nuclear deal during his initial term. The U.S. government’s strategy focuses on isolating Iran from the global economy to hinder its nuclear advancements, even as Tehran maintains that its nuclear intentions are purely peaceful.

The cancellation of Iraq’s exemption poses “temporary operational challenges,” as noted by Farhad Al-Alaily, an advisor to Prime Minister Mohammed Shia’ al-Sudani. He assured that the Iraqi government is actively seeking alternatives to secure electricity supplies while striving to enhance energy security through local production and investment in new technologies.

Washington has introduced extensive sanctions on Iran due to its nuclear ambitions and support for militant groups, putting any trade dealings with Iran at risk for countries like Iraq. James Hewitt from the U.S. National Security Council remarked that Trump has made clear that the Iranian regime must abandon its nuclear ambitions or face continued pressure.

In 2018, when sanctions on Iranian energy exports were reinstated, temporary exemptions were provided to Iraq among others, allowing continued purchases of Iranian energy. Over time, both Trump and Biden administrations consistently renewed this exemption, urging Iraq to reduce its dependency on Iranian electricity. The State Department reiterated this stance, labeling Iran as an unreliable energy supplier.

The U.S. has leveraged the exemption review to encourage Baghdad to facilitate Kurdish oil exports via Turkey, thereby increasing global supply and stabilizing prices to further restrict Iranian oil exports. Ongoing negotiations regarding these oil exports from the Kurdish region are facing significant challenges.

Finally, while emphasizing Iraq’s energy transition offers prospects for U.S. firms in enhancing productivity and developing reliable energy networks, a State Department spokesperson minimized the impact of Iranian electricity on Iraq’s grid. In fact, imports from Iran constituted merely 4% of Iraq’s total electricity usage in 2023.

In conclusion, the Trump administration’s cancellation of Iraq’s exemption for purchasing Iranian electricity is a strategic move under the ‘maximum pressure’ campaign against Iran. This decision aims to isolate Iran economically while striving to impel Iraq to seek energy alternatives. The U.S. continues to exert influence over Iraq’s energy policies, emphasizing the importance of energy independence and partnering with U.S. companies to enhance electricity infrastructure.

Original Source: www.jordannews.jo