BAGHDAD: Washington has declined to renew a sanctions waiver that allowed Iraq to buy electricity from neighbouring Iran, a spokesperson for the American embassy in Baghdad said on Sunday.

Despite having immense oil and gas reserves, Iraq remains dependent on imports to meet its energy needs, and Iran supplies a third of the country´s gas and electricity.

The Baghdad government, which hopes to achieve energy self-sufficiency by 2028, said it had prepared “for all scenarios” regarding the waiver.

“On March 8, the US Department of State did not renew the waiver for Iraq to purchase Iranian electricity,” the US embassy spokesperson said.

The decision “ensures we do not allow Iran any degree of economic or financial relief”, the spokesperson added.

The statement did not mention Iranian gas imports, which are crucial for Iraq´s domestic electricity generation.

The waiver was introduced in 2018, when Washington reimposed sanctions on Tehran after US President Donald Trump abandoned a nuclear deal with Iran during his first term in office.

Since returning to the White House in January, Trump has reinstated his policy of exerting “maximum pressure” against Iran.

“The president´s maximum pressure campaign is designed to end Iran´s nuclear threat, curtail its ballistic missile program, and stop it from supporting terrorist groups,” the embassy spokesperson said on Sunday. ”