US pressure puts Iraq’s Iranian energy ties at risk ...Iraq

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US pressure puts Iraq’s Iranian energy ties at risk

Shafaq News- Washington

US President Donald Trump’s renewed threat topunish countries trading with Iran is increasing pressure on Iraq to reduce itsdependence on Iranian energy while protecting a commercial relationship worthbillions of dollars.

    Trump has pledged an “unprecedented” economiccampaign against Tehran, describing it as the most severe financial pressureever imposed on a country. The latest push forms part of Washington’s broadereffort to restrict Iran’s access to foreign currency and curb its energy trade.

    For Iraq, the pressure reaches directly into theelectricity sector. Baghdad has relied for years on Iranian gas to fuel powerstations, while previous US sanctions waivers allowed it to purchase Iranianelectricity and manage related payments through restricted accounts. Washingtonhas repeatedly pressed Iraq to reduce that dependence and develop domesticenergy alternatives.

    Imported Iranian gas has at times supported roughlyone-third to 40% of Iraq’s electricity generation, leaving the grid vulnerablewhenever supplies fall. Recent disruptions have repeatedly cost Iraq thousandsof megawatts of generation capacity.

    Iraq has been trying to reduce that exposurethrough domestic gas development, electricity interconnections and alternativefuel supplies. The challenge remains substantial: Reuters cited that Iraqpurchases about $4 billion to $5 billion worth of Iranian gas annually.

    Read more: The end of a waiver: Iraq's struggle forenergy independence

    Tehran’s Wider Trade Network

    The pressure on Baghdad comes as Washington targetsIran’s broader network of trading partners.

    China remains Iran’s most important oil customer.Reuters reported that China imported about 1.38 million barrels per day ofIranian crude in 2025, with trade structured in ways designed to limit exposureto US sanctions.

    Turkiye also maintains significant commercial tieswith Tehran, with bilateral trade running at roughly $5 billion to $6 billionannually, much of it linked to energy. The United Arab Emirates hashistorically served as another important commercial hub, although recentregional tensions have disrupted those ties.

    India’s trade relationship with Iran has contractedsharply under sanctions. However, Indian refiners briefly resumed Iranian crudepurchases in April 2026 during a period of temporary sanctions relief, withpreliminary Kpler data cited by AFP putting imports at about 276,000 barrelsper day by mid-April. Reuters had earlier reported that this marked India’sfirst Iranian oil cargo in roughly seven years.

    Russia, meanwhile, has expanded economic ties withTehran as both countries seek alternative trade and financial channels underWestern sanctions.

    Read more: Energy crisis now political: US halts key Iraqi gas deal

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