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Rising Disputes Over U.S. Exemptions for Iraq’s Energy Imports
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While Washington will not renew Iraq’s exemption from sanctions on Iranian energy imports, it seems unlikely to impose strict penalties on Baghdad for violations
Over the past two weeks, the U.S. administration has taken a clearer stance on Middle Eastern affairs, following a month of President Donald Trump’s return to the White House and his new team assuming office.
Iraq remains a critical issue in U.S. foreign policy, given its historical role in Washington’s strategy, its connection to counterterrorism and ISIS, and its impact on U.S.-Iran relations. Additionally, American interests in Iraq are tied to the legacy of soldiers who served there.
🔹 Direct Engagement with Baghdad
In recent weeks, senior White House officials have engaged in multiple discussions to better understand Iraq’s position. Among the most significant interactions was a call between the White House and Iraqi Prime Minister Mohammed Shia’ al-Sudani, followed by a separate conversation between U.S. Secretary of State Marco Rubio and al-Sudani.
The sequence of these communications reflects Trump’s hands-on approach, with key decisions being managed by a close circle of advisors.
🔹 Conflicting Messages
The discussions between U.S. and Iraqi officials have led to discrepancies in messaging. The Iraqi government’s statement on the conversation between al-Sudani and Rubio was brief, whereas the U.S. State Department’s statement emphasized strategic partnership, Iraq’s sovereignty, and efforts to curb Iran’s influence while preventing ISIS resurgence.
A February 25 statement from the State Department’s spokesperson also indicated that al-Sudani and Rubio agreed on Iraq’s need for energy independence, reopening the Iraq-Turkey pipeline promptly, and respecting contractual rights of American companies to encourage further investment.
🔹 Debate Over Accuracy
However, an Iraqi government source told "Al Arabiya" and "Al Hadath" that some details in the U.S. statement were inaccurate. The source clarified that the call between al-Sudani and Rubio was constructive, covering issues like oil smuggling, the Iraq-Turkey pipeline, and the exemption of Iraq from U.S. sanctions on Iranian imports.
This exemption is crucial, as the last waiver, granted by the Biden administration, was issued four months ago and is set to expire on March 8, 2025—the same day this report is being published.
🔹 No Renewal for Sanctions Waiver
U.S. government sources told "Al Arabiya" and "Al Hadath" that Trump’s executive order reinstating the "maximum pressure" policy on Iran remains in effect, with all exemptions currently under review by the State Department.
Although Washington has no plans to renew Iraq’s waiver for importing Iranian energy, officials hinted that the U.S. is unlikely to strictly enforce penalties against Baghdad for any potential violations.
