Iraq Continues To Import Iranian Energy Despite US Demands

In March the Trump administration ended Iraq’s waiver to buy energy from Iran. Despite that Baghdad continues to import natural gas and electricity from its neighbor.

 

At the start of May Prime Minister Mohammed Sudani’s electricity advisor Adil Karim mentioned that Iraq is still buying energy from Iran. This was hinted back in March when the managing director of Iran’s Power Generation Company Mostafa Raja Mashed said that Baghdad would continue to buy Iranian power under a 5 year agreement that doesn’t end until 2027.

 

Iraq is largely dependent upon Iranian imports. Up to 40% of its power supply comes from Tehran’s gas and electricity. This is especially important as the scorching summer heat approaches and power demand jumps.

 

This comes despite the Trump administration pushing Iraq to end its ties with Iran. In March, the U.S. did not renew its waiver for Iraq to import Iranian gas and electricity. This is part of Trump’s renewed Maximum Pressure campaign against Tehran.

 

This means Iraq could face sanctions. With the possibility of widespread blackouts in the coming months Baghdad is taking a gamble that it can get away with this at least for a couple months. The Trump administration is also highly dysfunctional and may not even comment upon this for quite some time.

 

Iraq is working on multiple deals to diversify its power imports. It has built power lines to Jordan and Turkey and is working to connect to the Gulf States as well. Baghdad doesn’t charge for electricity however which means there is no control over usage. That means that Iraq will likely continue to buy Iranian energy even if these other deals work out. The U.S. would have to make a concerted effort to break this dependency.

 

SOURCES

 

Benny, John Aldroubi, Mina, “US rescinds sanctions waiver for Iraq’s energy imports from Iran,” The National,  3/9/25

 

Al Masalah, “Iraq officials acknowledges the suspension of power lines to Iran due to US sanctions,” 5/2/25

 

Rudaw, “Iraq continues to import Iranian gas despite expired US waiver,” 3/8/25

 

Shafaq News, “Despite sanctions, Iran to maintain power supply to Iraq,” 3/14/25

 

Xinhua, “Iraq to maintain power imports from Iran despite U.S. ending sanctions waiver: Iranian official,” 3/15/25