How will Iraq adapt to the loss of Iranian energy following waiver expiration?

The US sanctions waiver for Iraq, which allowed Baghdad to import electricity from Iran despite sanctions, expired on Saturday after the Trump administration decided not to renew it. Iraq now faces the urgent task of securing alternative energy sources before the sweltering summer months to prevent a severe electricity crisis.

This waiver was first introduced in 2018 under the Trump administration as part of its broader "maximum pressure" campaign against Iran. Trump's decision to withdraw from the Joint Comprehensive Plan of Action (JCPOA) led to the reimposition of sanctions on Iran, making it illegal for other countries to purchase Iranian energy without risking financial penalties. However, Iraq received periodic exemptions—typically lasting 90 to 120 days—to avoid an energy crisis. These waivers came with conditions, requiring Iraq to gradually reduce its dependence on Iranian imports and seek alternative energy sources.