Iraq is bracing for a potential electricity crisis after the United States ended a critical waiver that allowed the country to purchase energy from Iran, according to three senior energy officials who spoke to Reuters on Sunday. With no immediate alternatives in sight, the decision threatens to exacerbate an already fragile power supply system, particularly during the sweltering summer months when demand for electricity soars.
The Trump administration’s move to rescind the waiver is part of its broader “maximum pressure” campaign against Tehran, aimed at curtailing Iran’s economic influence. A State Department spokesperson confirmed the decision on Saturday, leaving Iraq with limited options to address its growing energy deficit. The waiver had previously enabled Baghdad to pay Iran for natural gas and electricity imports, which account for a significant portion of the country’s power generation capacity.
One senior official from Iraq’s Electricity Ministry revealed that the government has begun implementing urgent measures to mitigate the impact of the U.S. decision. However, these efforts are unlikely to bridge the gap left by the loss of Iranian energy supplies. “We are exploring all possible solutions, but the reality is that we have no immediate alternatives to replace what we import from Iran,” the official said, speaking on condition of anonymity due to the sensitivity of the matter.
Iraq is reliant on Iranian power due to years of neglect of the domestic infrastructure, corruption, and extensive mismanagement. Despite possessing several of the largest oil reserves globally, Iraq cannot produce power for domestic consumption, hence having to depend significantly on power and gas imports. This has made Iraq vulnerable to the politics between Tehran and Washington, which is among the contributing factors to the inability to ensure the supply of reliable power supplies to the people.
American timing could hardly be worse. Iraq’s temperatures during the summer often reach above 50 degrees Celsius (122 Fahrenheit), increasing the demand for power as households and companies use the air conditioner in a struggle to cope with the scorching summer. Past summer seasons saw huge demonstrations at general power blackouts, with irate citizens accusing the government of failing to supply their most basic requirements. The government fears the same unrest will be experienced during the summer if the power crisis continues to worsen.
Iraqi officials are said to be hurrying to speed up efforts to increase domestic production and look for other suppliers in the face of the impending crisis. Negotiations with neighboring states, including Jordan and Saudi Arabia, are already under way for possible energy collaboration. The government is also working to refurbish and update old power plants, though it has been slow owing to administrative obstacles and a lack of finance.
Energy experts warn, however, that these measures will take time to yield results. “Even if Iraq manages to secure new agreements or improve its infrastructure, it won’t happen overnight,” said Ahmed al-Khafaji, an independent energy analyst based in Baghdad. “In the short term, people should brace themselves for difficult days ahead.”
The decision taken by the US has raised fears about the sovereignty of Iraq and its ability to wade through the murky waters of its international relations. Whereas Washington claims that rescinding the waiver fits its policy of isolating Iran economically, the critics the move puts so much pressure on Baghdad to choose that side in a clash of which it is not a responsible party.
There will be a trial in the months ahead concerning the revocation of the waiver, testing the endurance of the energy sector and the patience of Iraqis. Presently, the perspective of yet another summer marking absence of power speaks quite loudly of the need to devise long-lasting solutions to a problem that has existed in the country for way too long.
