Economy Insights – Baghdad
The American energy-focused website “Rale Claire Angri” posited that the impending deadline of March 7 represents a critical juncture for the Biden administration’s approach towards Iraq’s energy independence. This date marks an opportunity for the U.S. to urge Iraq to reduce its dependence on Iranian energy resources by terminating presidential exemptions that currently permit Baghdad to import gas and electricity from Iran.
According to the report, which has significant implications for Iraqi energy policy, the recent sanctions exemption granted by the Biden administration, which lasts for 120 days, is set to expire on March 7, 2025. This exemption allows Iraq to continue receiving Iranian gas and electricity.
The article highlighted that the Trump administration had previously indicated its intent not to renew such exemptions, particularly in the national security memorandum issued on February 4, which reaffirmed the strategy of maximum pressure against Iran.
The analysis suggested that it is crucial for the United States to end the exemption, as Iraq is on the cusp of achieving energy independence. This shift comes at a time when Iran has been unable to maintain consistent energy supplies to Iraq due to its own domestic shortages. Therefore, the report emphasized the importance of U.S. support for Iraq’s energy sector, particularly as Iraq aims for self-sufficiency by the summer of 2025.
For over a decade, Iraq has benefited from U.S. exemptions under the National Defense Authorization Act (2011), which has facilitated reduced purchases of Iranian oil in the context of U.S. national security interests. This framework has influenced Iraq, including during the initial Trump administration phase.
