The US administration has ended a sanctions waiver that allowed Iraq to purchase electricity from Iran. The waiver, which allowed Iraq to import power from Iran without being subject to US sanctions, expired on 8 March 2025 and was not renewed.
The waiver was originally put in place in 2018 when the first Trump administration reimposed sanctions on Iran, after abandoning the nuclear deal negotiated by the previous administration. Iraq has suffered from decades of electricity shortages and has become largely reliant on imported Iranian gas and power to meet its needs. The current US administration cited its strategy of “maximum pressure” on Iran to justify its decision.
The waiver that expired applied specifically to direct electricity imports. It currently remains unclear whether Iraq will be able to continue to import gas from Iran for its power plants.