Iraq Faces Energy Crisis Amidst U.S. Policy Shift

Iraq lacks immediate options to replace energy imports from Iran, threatening its electricity supply, particularly in the summer. This challenge arises after the U.S. revoked a waiver allowing Iraq to pay Iran for electricity, as part of its 'maximum pressure' campaign against Tehran.


Devdiscourse News Desk | Cairo | Updated: 09-03-2025 20:15 IST | Created: 09-03-2025 20:15 IST
Iraq Faces Energy Crisis Amidst U.S. Policy Shift
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Iraq is grappling with an urgent energy dilemma after a key U.S. policy change. With no immediate means to substitute Iranian energy imports, Iraq risks falling short in meeting its electricity demands, especially come summer, say energy officials.

The situation escalated following the Trump administration's revocation of a waiver which permitted Iraq to remunerate Iran for electricity services. The move forms part of President Donald Trump's broader 'maximum pressure' initiative aimed at Tehran, according to a State Department representative.

Consequently, Iraqi officials have embarked on emergency measures to mitigate the repercussions of this U.S. decision on the nation's power supply, a senior electricity ministry official disclosed to Reuters.

(With inputs from agencies.)

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