US terminates sanctions waver for Iraq to purchase gas, electricity from Iran

US National Security Advisor Michael Waltz informed Iraqi Prime Minister Mohammed Shia' al-Sudani in a phone call Sunday that Washington has decided to end a crucial sanctions waiver allowing Iraq to purchase gas and electricity from Iran.

Waltz described the decision as part of President Donald Trump's "maximum pressure" strategy aimed at reducing Iraq's dependence on Iranian energy sources, according to the Iraqi Prime Minister's Press Office.

"The decision to end the waiver for Iranian-supplied (gas and) electricity aligns with the Maximum Pressure Policy, emphasizing the need for bilateral coordination to mitigate any potential impact on Iraq's stability," Waltz said in the phone call, according to the press office.

Iraq has long depended on Iranian energy imports to meet its power needs, particularly during the summer months when domestic production falls short. Washington had previously granted exemptions to allow Iraq to bypass sanctions on Iran, but with the latest move, the US is pushing for Iraq to reduce its reliance on Iranian energy.

The US also reaffirmed its commitment to supporting Iraq's energy independence.

"The US is eager to see American companies play a greater role in Iraq's economic development, and we encourage efforts to remove any barriers that hinder their success," Waltz said.

During a separate meeting, al-Sudani stressed Iraq's ongoing efforts to create a stable business environment, emphasizing reforms designed to attract American investment.

"Iraq remains dedicated to strengthening its economic partnership with the United States and establishing a business environment that benefits both nations," he noted.

As part of efforts to replace Iranian gas, Iraq is exploring alternatives, including imports from Gulf countries.

Ali Shaddad, spokesperson for the Iraqi Parliament's Oil and Gas Committee, confirmed that a high-priority project to facilitate this shift is already underway in Basra.

Meanwhile, a US State Department spokesperson confirmed that Washington hopes the Iraqi government will soon start benefiting from the natural gas capabilities of Iraq's Kurdistan Region, further reducing reliance on Iran.