The U.S. administration has ended a sanctions waiver that allowed Iraq to import electricity from Iran, with the exemption expiring on March 8, 2025, and not being renewed.
The waiver, first granted in 2018 under the Trump administration after reimposing sanctions on Iran, enabled Iraq to purchase power without facing U.S. penalties. However, citing its “maximum pressure” strategy on Iran, the current administration has opted to let the waiver lapse, raising concerns over Iraq’s already struggling power sector.
Iraq has long relied on Iranian gas and electricity due to chronic shortages, and the decision is expected to strain its energy supply. While the expired waiver specifically covered electricity imports, it remains uncertain whether Iraq will still be able to import Iranian gas to fuel its power plants.