Baghdad: US National Security Advisor Michael Waltz informed Iraqi Prime Minister Mohammed Shia' al-Sudani in a phone call that Washington has decided to end a crucial sanctions waiver allowing Iraq to purchase gas and electricity from Iran.

According to Anadolu Agency, Waltz described the decision as part of President Donald Trump's "maximum pressure" strategy aimed at reducing Iraq's dependence on Iranian energy sources. This move aligns with the Maximum Pressure Policy, emphasizing the need for bilateral coordination to mitigate any potential impact on Iraq's stability, as stated by Waltz during the phone call.

Iraq has long depended on Iranian energy imports to meet its power needs, particularly during the summer months when domestic production falls short. Previously, Washington had granted exemptions to allow Iraq to bypass sanctions on Iran. However, with the latest decision, the US encourages Iraq to reduce its reliance on Iranian energy while reaffirming its commitment to supporting Iraq's energy independence.

Waltz highlighted the US's eagerness to see American companies play a greater role in Iraq's economic development and encouraged efforts to remove any barriers hindering their success. Meanwhile, in a separate meeting, al-Sudani emphasized Iraq's ongoing efforts to create a stable business environment and attract American investment, underscoring the commitment to strengthening economic partnerships with the United States.

As part of Iraq's efforts to replace Iranian gas, alternatives are being explored, including imports from Gulf countries. Ali Shaddad, spokesperson for the Iraqi Parliament's Oil and Gas Committee, confirmed that a high-priority project to facilitate this shift is already underway in Basra.

Additionally, a US State Department spokesperson confirmed that the US hopes the Iraqi government will soon benefit from the natural gas capabilities of Iraq's Kurdistan Region, further reducing reliance on Iran.