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Iraq’s Iranian Gas Dependence: U.S. Faces a Tough Choice

U.S. Must Accept Iraq’s Reliance on Iranian Gas, Says Khalifa Al-Tamimi

On March 10, 2025, Khalifa Al-Tamimi, a prominent Iraqi official, underscored the inevitability of U.S. acceptance regarding Iraq’s continued import of Iranian gas. He emphasized that, in the short term, this situation does not represent a precursor to any significant change.

In a detailed discussion, Al-Tamimi noted the deep economic ties between Iraq and the United States, particularly under the strategic framework agreement. This relationship is underscored by substantial U.S. investments—amounting to tens of billions of dollars—in Iraq’s oil and gas sectors, establishing the country as a vital investment landscape for American business interests.

Al-Tamimi pointed out that the Trump administration’s decision to revoke the exception permitting the import of Iranian gas to power Iraqi electricity stations was a calculated leverage tactic against Tehran. However, he anticipates that Washington will ultimately have to adapt to the reality of Iraq’s energy needs.

Current technical assessments indicate that Iraq lacks short-term alternatives for importing Iranian gas. Al-Tamimi explained that potential sources, such as gas from Turkmenistan or the Arabian Gulf, necessitate intricate technical arrangements that would take significant time—potentially one to two years—to implement.

Despite the cessation of the U.S. exception, Al-Tamimi confirmed that Iranian gas supplies continue to flow uninterrupted to power stations across Iraq, including Diyala and other regions. This observation counters speculation regarding a complete halt in supply. He remarked that Iranian authorities might shift towards a payment principle in the near future to secure their revenue during this transition period.

On March 6, 2025, the expiration of the U.S. exemption for exporting Iranian gas to Iraq raised concerns over potential energy shortages facing Iraqis in the upcoming hot summer months, even though supplies from Iran remain consistent.

This ongoing situation underscores the complexities of international energy dependencies and the geopolitical dynamics at play in the region.

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