The United States has called on Iraq to move away from its reliance on Iranian energy, emphasizing the need for Baghdad to achieve energy independence. Speaking at a press briefing on Thursday, US State Department spokesperson Tammy Bruce reaffirmed Washington’s support for Iraq’s efforts to diversify its energy sources and welcomed the Iraqi Prime Minister’s commitment to reducing reliance on Iranian imports.
The US has been assessing its sanctions waivers, particularly those permitting Iraq to import Iranian gas. A 120-day waiver, which had allowed these imports, expired on March 8. Bruce highlighted that limiting Iran’s economic influence in Iraq remains a key priority for the US as part of its broader strategy to ensure Iraq’s stability and sovereignty.
Since 2018, Washington has granted Iraq waivers to continue purchasing electricity and gas from Iran while developing its own energy infrastructure. However, due to existing US sanctions, payments for Iranian energy must be restricted to non-sanctioned transactions, such as humanitarian goods.
With ongoing sanctions on Iran over its nuclear activities and regional policies, Iraq faces increasing challenges in maintaining its energy supply through Iranian imports. Despite these restrictions, trade between Iraq and Iran remains substantial, with Iranian exports to Iraq surpassing $10 billion between March 2022 and March 2023. Iranian gas remains a key component of Iraq’s power generation, though US sanctions complicate financial transactions between the two countries.
In response, Iraq has been ramping up investments in projects aimed at capturing flared gas and expanding renewable energy use to decrease its dependence on Iranian imports.
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