"U.S. Ends Waiver for Iraq to Buy Power from Iran, Reuters Says"

The U.S. has taken a significant step in its "maximum pressure" campaign against Iran by rescinding a waiver that allowed Iraq to pay Iran for electricity. This move, announced by the Trump administration, is part of a broader strategy to isolate Iran from the global economy and curb its nuclear ambitions. The decision has far-reaching implications for the geopolitical dynamics between the U.S., Iraq, and Iran, as well as for global oil markets and energy prices.

The waiver, which had allowed Iraq to import Iranian electricity, expired on March 8, 2025. The U.S. State Department spokesperson emphasized that the decision ensures Iran does not receive any economic or financial relief. The U.S. aims to end Iran's nuclear threat, curtail its ballistic missile program, and stop its support for terrorist groups. This move is part of a broader strategy to isolate Iran from the global economy and eliminate its oil export revenues.

The U.S. has been applying "maximum pressure" on Iran since Trump's first term, when he pulled the U.S. out of the Iran nuclear deal. The U.S. government has imposed a range of sanctions on Tehran over its nuclear program and support for militant organizations, effectively banning countries that do business with Iran from doing business with the U.S. The U.S. has said it wants to isolate Iran from the global economy and eliminate its oil export revenues in order to slow Tehran's development of a nuclear weapon.

The decision to end the waiver puts pressure on Iraq to find alternative energy sources. Iraq is largely dependent on its energy imports from Iran, and the waiver's expiration will force it to seek alternative energy sources, which could strain its relationship with Iran. Iraq's spokesperson for the ministry of electricity, Ahmed Musa, stated that "Iraq is working closely with the ministry of oil to compensate the affected plants with alternative fuel and ensure that there is no electricity crisis." Iraq is exploring options such as increasing electricity imports from Jordan and Turkey, constructing solar projects, and activating agreements with Turkmenistan to import gas. These efforts will take time and may not fully compensate for the loss of Iranian energy supplies in the short term.

The U.S. "maximum pressure" campaign against Iran has several implications for global oil markets and energy prices. The U.S. has imposed a range of sanctions on Tehran over its nuclear program and support for militant organizations, effectively banning countries that do business with Iran from doing business with the U.S. This has led to a significant reduction in Iran's oil exports, as countries are forced to choose between trading with Iran or the U.S. As a result, global oil supply has decreased, leading to higher oil prices.

The U.S. has used the waiver review in part to increase pressure on Baghdad to allow Kurdish crude oil exports via Turkey. The aim is to boost supply to the global market and keep prices in check, giving the U.S. more room to pursue efforts to choke off Iranian oil exports. This has led to an increase in global oil supply, as Kurdish crude oil is exported to the global market. As a result, oil prices have decreased, presenting an opportunity for investors in the energy sector to invest in Kurdish crude oil exports.

However, the U.S. "maximum pressure" campaign against Iran also presents risks for investors in the energy sector. The U.S. has imposed a range of sanctions on Tehran over its nuclear program and support for militant organizations, effectively banning countries that do business with Iran from doing business with the U.S. This has led to a decrease in global oil supply, as countries are forced to choose between trading with Iran or the U.S. As a result, oil prices have increased, presenting a risk for investors in the energy sector who are exposed to higher oil prices.

In conclusion, the U.S. decision to end the waiver for Iraq to buy power from Iran has far-reaching implications for the geopolitical dynamics between the U.S., Iraq, and Iran, as well as for global oil markets and energy prices. The U.S. aims to isolate Iran and reduce its influence, while Iraq will face significant challenges in finding alternative energy sources. Iran will likely experience economic hardship and potential escalation in tensions with the U.S. and its allies. Investors in the energy sector should carefully consider these implications when making investment decisions.