In a press briefing on Thursday, United States State Department Spokesperson Matthew Miller confirmed the Biden administration's issuance of a 120-day waiver, allowing Iraq to continue purchasing electricity from Iran. This waiver has been a routine occurrence since 2018, following the re-imposition of sanctions on Iran by then-President Donald Trump after exiting the Iranian nuclear deal.

The necessity for such waivers arose due to the reinstatement of sanctions, disrupting Iraq's ability to freely import electricity from Iran, which was vital for the country's well-being and political stability. Despite journalists' inquiries during the briefing regarding the wisdom of the latest waiver, Miller pointed out the decision's continuity from the previous administration's policy on Iran.

However, recent changes in procedures have been prompted by Iranian pressure on Iraq. Previously, funds paid by Iraq for Iranian electricity were deposited into an Iraqi bank's escrow account, subject to manipulation by Iran. To address this issue, Iraq requested redirection of these funds to a bank account in Oman, a move supported by the Biden administration since July 2023.

Miller highlighted Iraq's progress towards energy sufficiency since 2020, with significant reductions in Iranian energy imports and doubled domestic electricity generation over the past decade. The administration pledges ongoing support for Iraq's efforts to achieve energy independence.

The decision to grant the waiver comes amid heightened tensions between the U.S. and Iran, fueled by Tehran's aggressive posture and support for proxies, particularly evident since the outbreak of conflict in Gaza between Israel and Hamas last October.