Is US pressure on Iraq over reliance on Iranian electricity a blessing in disguise?

Special Is US pressure on Iraq over reliance on Iranian electricity a blessing in disguise?
Power outages are commonplace in Iraq, which had become highly dependent on Iranian gas and electricity supply. (AFP)
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Updated 27 March 2025
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Is US pressure on Iraq over reliance on Iranian electricity a blessing in disguise?

Is US pressure on Iraq over reliance on Iranian electricity a blessing in disguise?
  • The US has ended a key sanctions waiver, increasing pressure on Iraq to reduce its reliance on Iranian gas and electricity
  • Baghdad is trying to integrate with the GCC power grid to enhance energy security, much to the chagrin of Iran-backed factions

DUBAI/LONDON: Iraq has long had to balance its relationships between competing regional powers, particularly Iran and the Gulf states. Now, with renewed US harrying of Iraq to stop buying gas and electricity from Iran, Baghdad could be drawn further into the Arab orbit.

On March 8, the US State Department said it was not renewing a sanctions waiver that had allowed Iraq to import Iranian electricity. The waiver, initially introduced in 2018 after the US withdrew from the Iran nuclear deal, has been a lifeline for Iraq’s struggling power grid.

Despite its vast oil and gas wealth, years of conflict, corruption, and underinvestment have left Iraq highly dependent on Iranian gas and direct electricity imports to meet its energy needs. Power outages are commonplace, especially in the scorching summer months.




Iraqi laborers work at an oil refinery in the southern town Nassiriya. (AFP/File)

The US decision came as part of President Donald Trump’s “maximum pressure” campaign on Iran, which is “designed to end Iran’s nuclear threat, curtail its ballistic missile program and stop it from supporting terrorist groups,” according to a statement from the US Embassy in Baghdad.

“We urge the Iraqi government to eliminate its dependence on Iranian sources of energy as soon as possible, and welcome the Iraqi prime minister’s commitment to achieve energy independence,” the statement added.

In a call with Prime Minister Mohammed Shia’ Al-Sudani on March 9, US National Security Adviser Mike Waltz encouraged Baghdad to welcome more Western and US energy companies into Iraq’s oil and gas sectors.

According to a readout from that call, Waltz also urged the Iraqi government to work with the semi-autonomous Kurdistan Regional Government of northern Iraq to address remaining contract disputes over energy and to pay arrears owed to US energy companies.




US National Security Adbviser Michael Waltz. (AFP)

Iranian Foreign Minister Abbas Araghchi took to social media on March 10 to criticize the US move, saying it targeted the people of Iraq by attempting to deprive them of access to basic services such as electricity, particularly ahead of the approaching summer months.

With the waiver rescinded, it remains unclear whether Iraq will be permitted to continue importing gas from Iran to feed its power plants. Indeed, some 43 percent of the country’s electricity is generated from Iranian gas.

On March 12, Farhad Alaaeldin, the Iraqi prime minister’s foreign affairs adviser, told a local TV channel that the waiver guaranteed by the US on the import of gas was still in effect — and that only the exemption on imported power has been canceled.

Alaaeldin said the US was, for now at least, merely encouraging Iraq to secure gas from other sources. “The American administration says … diversify your import sources. Go to other countries,” he said.

The US Embassy statement asserted that electricity imports from Iran represent only 4 percent of electricity consumption in Iraq.

But a spokesperson for Iraq’s Ministry of Electricity, Ahmad Moussa, told the Associated Press that should gas imports also be forbidden, it “would cause Iraq to lose more than 30 percent of its electricity energy.”




On March 6, 2025, Iraq's Ministry of Electricity launched Shams Basra, the country's largest solar energy project, in cooperation with Total Energies. (Iraqi News Agency photo)

Although this renewed pressure on Baghdad has officials scrambling to find alternatives, it arguably presents an opportunity for Iraq to pivot toward the Gulf states, integrate into the Arab fold, and thereby reduce its reliance on Tehran.

The question now is whether the Iraqi government will seize the moment to achieve energy independence or remain tethered to Iran’s energy infrastructure.

Achieving true energy independence will not be easy.

In 2022, Iran exported 3.5 terawatt hours of electricity to Iraq through four transmission lines. Iraq also imports up to 50 million cubic meters of gas per day from Iran. The neighbors signed a five-year extension to their gas export agreement in March 2024.

Talks on Iranian gas exports to Iraq began in the second half of 2010, shortly after the US military withdrawal following the 2003 invasion, leading to the signing of a supply agreement for Baghdad in July 2013. A contract for gas exports to Basra was signed in November 2015.

Iraq spends about $4 billion annually on Iranian energy, but US sanctions have delayed the country’s ability to make timely payments, leading to substantial debt accumulation, estimated at $11 billion.

To settle this debt, Iraq proposed an oil-for-gas deal in 2023, allowing it to repay Iran with crude. However it chooses to make these repayments, this significant debt burden poses a further challenge to severing links.

According to Iraq’s Parliamentary Oil, Gas and Natural Resources Committee, securing alternative sources of energy has proven difficult, with past diversification efforts delayed by bureaucracy and political resistance from Iran-backed factions in Baghdad.

Despite the challenges, Iraq has begun taking concrete steps toward integrating with the Gulf Cooperation Council’s energy network. An Oct. 9, 2024, agreement to connect Iraq to the GCC Interconnection Authority marked a significant milestone.




Iraq’s inclusion in the GCC Interconnection Authority would not only reduce its reliance on Iran but enhance regional energy cooperation. (Supplied)

The GCCIA was originally established to link the power grids of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. Iraq’s inclusion in this grid would not only reduce its reliance on Iranian gas but also enhance regional energy cooperation.

Under the agreement, Iraq will receive 500 megawatts of electricity through transmission lines from Kuwait’s Al-Wafra station to Al-Faw in Basra. A separate deal with Saudi Arabia is expected to add another 1,000 megawatts to Iraq’s power supply.

Given its own significant domestic energy challenges, including infrastructure problems and environmental factors such as droughts that have reduced its hydroelectric output, there is even a case to be made for Iran benefitting from integration into the broader GCCIA grid.

Elsewhere, Iraq has partnered with Saudi Arabia’s ACWA Power, the UAE’s Masdar, and France’s TotalEnergies to develop solar power plants, although these projects are still years away from completion.




Iraq's solar power projects are still years away from completion. ((Shutterstock/file)

Beyond the Gulf grid, Iraq is pursuing additional measures to reduce its dependence on Iranian energy, including an agreement with Turkmenistan in October 2023 to import 20 million cubic meters of gas per day.

Meanwhile, a 115-km transmission line with Turkiye now supplies 300 megawatts of electricity to northern Iraq. Iraq is also building a liquefied natural gas terminal in Al-Faw with a storage capacity of 300,000 cubic meters.

Despite these efforts, Iraq’s transition away from Iranian energy still faces major hurdles.

“The current production of domestic gas cannot replace Iranian imports at this stage, as achieving self-sufficiency requires several years of development and investment,” Iraqi economic analyst Nabil Al-Marsoumi said in a recent social media post.

Even as Iraq moves toward energy diversification, Iran is unlikely to relinquish its grip without resistance.

Tehran exerts significant political influence in Baghdad through Iran-backed militias and Shiite political factions. These groups view stronger GCC ties as a threat to their dominance and have historically opposed efforts to reduce Iraqi dependence on Iranian energy.




Iraq's Prime Minister Mohammed Shia’ Al-Sudani. (AFP)

Prime Minister Al-Sudani initially sought a waiver extension until 2028, arguing that Iraq needed more time to secure alternative energy sources. However, under US pressure, he ultimately relented and announced Iraq’s compliance with sanctions.

His decision sparked criticism from pro-Iranian factions within Iraq, further illustrating the political tightrope he must walk.

Ordinary Iraqis, meanwhile, remain skeptical. Many citizens believe their leaders are beholden to Iran’s interests rather than prioritizing national energy security.

“As long as those in power remain loyal to Iran, they will do whatever it takes to keep us reliant on it,” Modhar, a Baghdad-based driver, told Arab News.

For Gulf states, deepening energy ties with Iraq presents both opportunities and risks. A more integrated Iraq could serve as a bridge between the Arab world and Iran, facilitating broader regional cooperation.

Additionally, stronger economic ties with Baghdad could help Gulf economies diversify their own economies beyond oil exports.

However, Gulf countries must also navigate Iraq’s internal political landscape carefully. Any overt effort to pull Iraq away from Iran risks provoking retaliation from Iran-backed militias, which have launched attacks on US and Gulf interests in the past.




Iraq's new LNG terminal at Al-Faw. (Getty Images)

That said, energy interdependence has the potential to be a stabilizing factor. As regional energy demand grows, a Gulf-wide electricity grid that includes Iraq could provide a reliable supply and reduce dependence on volatile suppliers like Iran.

With the GCC currently producing 272 gigawatts of electricity, a fully integrated power grid could transform Iraq’s economy and cement its position within the Arab fold. How Iraq responds in the coming months will define its future for years to come.

The suspension of the US sanctions waiver has forced Baghdad to confront its reliance on Iranian energy. While the road to energy independence is fraught with challenges, Iraq’s deepening ties with the GCC present a viable alternative.

Whether Iraq can successfully integrate into the GCC’s energy network while balancing its relationship with Iran remains to be seen. However, if Baghdad seizes this historic opportunity, it could finally achieve the energy security and regional influence it has long sought.

As Al-Marsoumi warned: “Key energy projects remain years away from completion.” But the long-term potential of Iraq’s pivot to the GCC is undeniable.

The coming months will determine whether Iraq charts a new course toward the Arab world — or remains in Iran’s shadow.


 


Israeli PM says to return hostages without giving in to ‘Hamas dictates’

Israeli PM says to return hostages without giving in to ‘Hamas dictates’
Updated 19 April 2025
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Israeli PM says to return hostages without giving in to ‘Hamas dictates’

Israeli PM says to return hostages without giving in to ‘Hamas dictates’
  • “I believe we can bring our hostages home without surrendering to Hamas’s dictates,” Netanyahu said
  • “We are at a critical stage of the campaign, and at this point, we need patience”

JERUSALEM: Israel’s Prime Minister Benjamin Netanyahu vowed Saturday to bring home the remaining hostages in Gaza without yielding to Hamas’ demands, insisting the military campaign in the Palestinian territory had reached a “critical stage.”
“I believe we can bring our hostages home without surrendering to Hamas’s dictates,” Netanyahu said, in his first comments since Hamas, seeking a permanent end to the Gaza war, rejected a new truce proposal from Israel.
“We are at a critical stage of the campaign, and at this point, we need patience and determination to win.”
The remarks drew a swift rebuttal from an Israeli campaign group representing the hostages’ families, which accused Netanyahu of having “no plan” for securing the captives’ freedom.
“There is one clear, feasible, and urgent solution that can be achieved now: reach a deal that will bring everyone home — even if it means stopping the fighting,” Hostages and Missing Families Forum said in a statement.
Netanyahu, however, insisted that ending the war now would embolden the country’s enemies.
“Ending the war under these surrender conditions would send a message to all of Israel’s enemies: that abducting Israelis can bring Israel to its knees. It would prove that terrorism pays — and that message would endanger the entire free world,” he said.
Hamas, Netanyahu said, was “demanding the end of the war and the continuation of its rule,” as well as a full Israeli withdrawal, “which would enable Hamas to rearm and plan more attacks against us.”
“If we commit to ending the war, we will not be able to resume fighting in Gaza,” he said.
“So I ask you — did our soldiers fight in vain? Did our heroes fall and suffer for nothing?“


Jordan participates in Palestine reconstruction forum in Istanbul

Jordan participates in Palestine reconstruction forum in Istanbul
Updated 19 April 2025
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Jordan participates in Palestine reconstruction forum in Istanbul

Jordan participates in Palestine reconstruction forum in Istanbul
  • A full inventory of tools and equipment earmarked for debris removal and rebuilding has already been submitted

AMMAN: Jordan has joined regional and international efforts to support the reconstruction of Palestine, taking part in the Arab International Commission for the Reconstruction of Palestine Forum, which opened Friday in Istanbul under the theme “From the Rubble We Build Hope.”

The Jordanian Contractors Association participated in the forum’s activities under the auspices of the Higher Committee for Reconstruction in Palestine, represented by its President Fouad Duwairi and Vice President Marouf Ghananim, the Jordan News Agency reported.

In his address, Duwairi outlined the association’s efforts to assist reconstruction efforts in Palestine and Gaza, highlighting the donations made by Jordanian contractors in recent months.

He also shared technical studies conducted by the association, aimed at supporting rebuilding initiatives.

Duwairi reaffirmed the JCA’s commitment to aiding the Palestinian people, noting that Jordanian contractors have donated machinery and construction equipment for reconstruction efforts.

A full inventory of tools and equipment earmarked for debris removal and rebuilding has already been submitted.

He explained that clearing the debris and recycling materials in Gaza is expected to take approximately a year once the enclave is divided into operational zones, stressing that Jordanian contractors were fully prepared to engage in the reconstruction process.

The JCA, Duwairi added, has participated in several international conferences to explore innovative methods for recycling construction materials for use in Gaza’s rebuilding.

Coordination continues with Jordanian contractors to secure the necessary machinery and construction supplies in collaboration with the Higher Committee for Reconstruction.

In recognition of their contributions, the Arab International Authority for the Reconstruction of Palestine honored Duwairi and the JCA for their significant role in supporting reconstruction initiatives.


Gaza aid delivery focus of talks in Turkiye

Gaza aid delivery focus of talks in Turkiye
Updated 29 sec ago
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Gaza aid delivery focus of talks in Turkiye

Gaza aid delivery focus of talks in Turkiye
  • Kalin reassured them of Turkiye’s ongoing support and said Ankara would firmly oppose any new efforts to occupy or annex further Palestinian territory

ISTANBUL: Turkiye’s intelligence chief Ibrahim Kalin met with Hamas leaders on Saturday for talks about how to deliver aid to war-ravaged Gaza where Israel resumed its military offensive last month.
Kalin held talks with Mohammed Darwish, head of the political council of Hamas, which rules Gaza, and his delegation, Turkiye’s Anadolu state news agency reported, without saying where the meeting took place. Media reports said it was in Turkiye.
As well as discussing ways to deliver humanitarian aid, they also spoke of initiatives to secure a permanent ceasefire along with ways to counter Israeli plans to displace Gaza’s population forcibly, Anadolu said, citing security sources.
Kalin reassured them of Turkiye’s ongoing support and said Ankara would firmly oppose any new efforts to occupy or annex further Palestinian territory.
After 18 months of devastating war and an Israeli aid blockade since March 2, the UN has said Gaza is facing its most severe humanitarian crisis since the war began in October 2023, triggered by Hamas’ attack on Israel.
Hamas on Thursday accused Israel of using “starvation as a weapon” by blocking aid supplies.
But Israel has vowed to keep blocking humanitarian aid, saying it is the only way to force Hamas to release the 58 hostages still held there.

 


Lebanese leaders criticize Hezbollah’s refusal to disarm

Lebanese leaders criticize Hezbollah’s refusal to disarm
Updated 19 April 2025
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Lebanese leaders criticize Hezbollah’s refusal to disarm

Lebanese leaders criticize Hezbollah’s refusal to disarm
  • ‘Those who use threats must first stop the tragedies,’ says Lebanese Forces leader

BEIRUT: The Lebanese army on Saturday continued to detonate munitions left over from the Israeli war in southern Lebanon, as well as confiscating ordnance in the area south of the Litani River.

Explosions were heard across southern Lebanon, accompanied by reconnaissance flights from Lebanese army Cessna aircraft south of the Litani River.

During the most recent cabinet session, Army Commander Gen. Rudolph Haykal confirmed that it was no longer possible to cross the Litani River from north to south without passing through Lebanese Army checkpoints. The commander also reviewed the seizure and confiscation of equipment, weapons, and ammunition, presenting statistics from more than 5,000 missions.

In a statement earlier this week, President Joseph Aoun announced that weapons would be brought under state control this year. However, campaigns by Hezbollah officials threaten to disrupt the path outlined by President Aoun and Prime Minister Nawaf Salam to achieve this end. On Saturday, several Lebanese politicians came out against Hezbollah’s attempt to retain its weapons.

The Hezbollah leaders have not learned from the lessons of the catastrophe caused by their party.

Ashraf Rifi, MP and former justice minister

“The remaining Hezbollah leaders have not learned from the lessons of the catastrophe caused by their party,” said MP and former Justice Minister Ashraf Rifi, claiming that Hezbollah was being “reckless” and holding on to weapons “in support of Tehran, which is negotiating with the US at the expense of the Lebanese.”

He added: “These people appear to have lost essential wisdom and reasoning skills. Sooner or later, the weapons will be surrendered and dismantled; history does not move backward.”

Rifi’s comments followed a series of statements from Hezbollah in recent days, in which the group rejected the notion of surrendering its weapons to the state. They issued a threat to “cut off the hand” of anyone who tried to disarm them.

Hezbollah Secretary-General Naim Qassem said on Friday: “Remove this issue from your vocabulary, as no one will disarm us.”

He added that an Israeli withdrawal and reconstruction efforts must come before any discussions of a defense strategy.

Iranian Ambassador to Lebanon Mojtaba Amani endorsed Hezbollah’s stance, stating on Saturday that “the disarmament project is a clear plot against countries,” and warning against “falling into Israel’s trap.”

The Iranian diplomat posted on X: “While the US supplies the Israeli regime with the latest weapons and missiles, it simultaneously prevents other countries from strengthening and arming their militaries. Using various pretexts, it pressures them to reduce or destroy their arsenals.”

He added that when countries agree to disarmament demands, they become vulnerable to attacks and occupations, citing Iraq, Libya, and Syria as examples.

Amani stressed that Iran was aware of the dangers posed by “this conspiracy and its threat to regional nations’ security.”

He said: “We warn others not to fall into Israel’s trap, as maintaining deterrence is the first line of defense for sovereignty and independence, and it should not be put at risk.”

Hezbollah’s position has drawn widespread criticism, however. MP Paula Yacoubian characterized it as a strategy to enhance Iran’s negotiation position with the US, and said Lebanon was being used as a bargaining chip.

“Iran, which has poured billions into Hezbollah, now seeks greater returns,” she said. “To preserve the regime, it is time to make concessions, and the party must stop repeating outdated rhetoric while reclaiming its Lebanese identity.”

Former President Michel Suleiman said in a statement: "No to threats of cutting off hands. No to hints of civil war. No to discussions about the army's weaknesses. No to claims regarding the strength of the resistance. No to the idea of keeping weapons in the south, the mountains, the Bekaa, the north, or Beirut in the hands of anyone other than the state.

"Why is this important? Because if the state does not control weapons, then the state and its institutions will not survive.

"Consequently, the economy will not prosper, and we will not restore our friendship with our sister state or the international community."

Lebanese Forces leader Samir Geagea stated that “resorting to threats, especially regarding severing hands, has no place in a democratic state or a country seeking civil peace.”

He urged those using such rhetoric to stop, as their actions have already caused “significant harm and damage to Lebanon and its people,” adding that they should step aside and “allow the new leadership to guide the country out of the tragedy” they have created.

Geagea also urged Hezbollah to focus on “rebuilding an effective state capable of restoring dignity, pride, and a decent life for the Lebanese people, and take the initiative to facilitate reconstruction efforts.”

A political source told Arab News that Hezbollah’s rejection of disarmament, most recently expressed by Naim Qassem, aimed to preserve internal balance and boost morale within the party.

“Meanwhile, the Iranian position indicates that Iran is trying to control Hezbollah. There may also be another explanation: they may be seeking to gain time,” said the source.

 


Gazans resort to turtle meat in hunt for food

Gazans resort to turtle meat in hunt for food
Updated 19 April 2025
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Gazans resort to turtle meat in hunt for food

Gazans resort to turtle meat in hunt for food
  • Once the shell has been removed, the meat is cut up, boiled and cooked in a mix of onion, pepper, tomato and spices
  • “The children were afraid of the turtle, and we told them it tasted as delicious as veal,” said Majida Qanan

KHAN YUNIS, Palestinian Territories: With food scarce in the besieged and war-battered Gaza Strip, some desperate families have turned to eating sea turtles as a rare source of protein.
Once the shell has been removed, the meat is cut up, boiled and cooked in a mix of onion, pepper, tomato and spices.
“The children were afraid of the turtle, and we told them it tasted as delicious as veal,” said Majida Qanan, keeping an eye on the chunks of red meat simmering in a pot over a wood fire.
“Some of them ate it, but others refused.”
For lack of a better alternative, this is the third time 61-year-old Qanan has prepared a turtle-based meal for her family who were displaced and now live in a tent in Khan Yunis, southern Gaza largest city.
After 18 months of devastating war and an Israeli blockade on aid since March 2, the United Nations has warned of a dire humanitarian situation for the 2.4 million inhabitants of the Palestinian territory.
Israel has accused Hamas of diverting aid, which the Palestinian militant group denies.
The heads of 12 major aid organizations warned on Thursday that “famine is not just a risk, but likely rapidly unfolding in almost all parts” of the territory.
“There are no open crossings and there is nothing in the market,” said Qanan.
“When I buy two small bags (of vegetables) for 80 shekels ($22), there is no meat,” she added.
Sea turtles are internationally protected as an endangered species, but those caught in Gaza fishermen’s nets are used for food.
Qanan mixes the meat with flour and vinegar to wash it, before rinsing and boiling it in an old metal pot.
“We never expected to eat a turtle,” fisherman Abdel Halim Qanan said.
“When the war started, there was a food shortage. There is no food. So (turtle meat) is an alternative for other sources of protein. There is no meat, poultry or vegetables.”
The UN’s Office for the Coordination of Humanitarian Affairs has warned that Gaza is facing its most severe humanitarian crisis since the war began on October 7, 2023, triggered by Hamas’s attack on Israel.
Fighting has raged in Gaza since then, pausing only twice — recently during a two-month ceasefire between January 19 and March 17, and in a previous one-week halt in late November 2023.
The World Health Organization’s regional chief Hanan Balkhy said in June that some Gazans were so desperate that they were eating animal food, grass, and drinking sewage water.
Hamas on Thursday accused Israel of using “starvation as a weapon” against Gazans by blocking aid supplies.
Fisherman Qanan said the turtles were killed in the “halal” method, in accordance with Islamic rites.
“If there was no famine, we would not eat it and leave it, but we want to compensate for the lack of protein,” he said.