The Trump administration has ended a waiver that allowed the Iraqi government to purchase Iranian electricity, as part of its efforts to increase pressure on Iran. National Security Advisor Mike Waltz reiterated the US government’s commitment to preventing Iran from acquiring nuclear weapons and encouraged Iraq to achieve energy independence. Additionally, he urged Iraq to resolve disputes with the Kurdistan Regional Government and pay arrears owed to US energy companies. The goal is to boost oil supply globally and keep prices in check, ultimately starving Iran and Russia of fuel profits.
President Trump had previously issued the sanctions waiver for Iraq as part of his maximum pressure campaign on Iran. The waiver only applied to electricity, which has dropped to just 4% reliance on Iran. Expanding the ban to include gas used for power plants could result in a loss of more than 30% of Iraq’s energy supply. President Joe Biden had repeatedly renewed the waiver until its recent expiration, despite Iran’s growing influence over Iraqi leadership. The US leverage over Iraq, including $100 billion in reserves held in the US, could be used to pressure Iraq amid Iran’s firm grip on the region.
President Trump disclosed that he had sent a letter to Iranian Supreme Leader Ayatollah Ali Khamenei, urging Tehran to engage in negotiations for a new nuclear agreement to avoid military consequences. Iran’s recent increase in uranium enrichment to 60% is a concerning development, as it brings them closer to a weapons-grade supply. Ayatollah Ali Khamenei rejected talks with “bullying countries,” while Iran continues to export 1.5 million barrels of oil daily. Trump’s executive order aims to drive Iran’s oil exports to zero, with additional efforts targeting the Chabahar port in Iran and potential sanctions on Chinese oil purchases from Iran.
The US continues to exert pressure on Iran through sanctions and the reduction of its oil exports. Trump’s administration is particularly focused on curbing Iran’s nuclear capabilities and increasing diplomatic negotiations with the country. Efforts to starve Iran and Russia of fuel profits are part of a larger strategy to maintain global stability and security. Iraq’s dependence on Iranian energy sources and unresolved disputes with the Kurdistan Region Government are key factors in the administration’s approach to the region.
As the US escalates its pressure on Iran, tensions in the Middle East remain high. Trump’s preference for diplomatic negotiations over military intervention is evident in his communication with Iran. The US military presence in Iraq and its significant leverage over the nation further complicates the situation. Iran’s defiance in the face of US pressure and sanctions highlights the challenges of diplomatic engagement with the country. The Trump administration’s efforts to choke off Iran’s profits and prevent its nuclear ambitions are part of a broader push towards regional stability and security in the Middle East.
