Iran rejects talks under ‘pressure’ as US revokes Iraq’s energy waiver

The U.S. has ended a sanctions waiver that allowed Iraq to import electricity from Iran, a move that escalates President Donald Trump’s “maximum pressure” campaign against Tehran and could worsen power shortages for millions of Iraqis.

The decision comes amid mixed signals from Iran about its willingness to engage in nuclear talks with the United States. While Iran’s U.N. mission suggested Sunday that Tehran might consider discussions about “potential militarization” concerns, Foreign Minister Abbas Araghchi firmly rejected negotiations on Monday.

“We will NOT negotiate under pressure and intimidation. We will NOT even consider it, no matter what the subject may be,” Araghchi wrote on social media platform X. He emphasized that Iran’s nuclear program “was and always will be entirely peaceful,” dismissing concerns about its potential military dimensions.

Since returning to the White House in January, Trump has reinstated his policy of exerting “maximum pressure” on Iran, reimposing sweeping sanctions aimed particularly at crippling its oil industry.

The State Department said Sunday the decision not to renew Iraq’s sanctions waiver was made to “ensure we do not allow Iran any degree of economic or financial relief.” Iran currently supplies a third of Iraq’s gas and electricity, providing Tehran with substantial income.

Türkiye as potential savior to Iraq’s energy challenges

Iraq, despite possessing immense oil and gas reserves, remains dependent on energy imports. Baghdad officials stated they had prepared “for all scenarios” regarding the waiver’s end, but Gulf analyst Yesar Al-Maleki of the Middle East Economic Survey warned that Iraq will now face challenges in providing electricity, especially during summer months.

The ending of the energy waiver is expected to exacerbate power shortages affecting the daily lives of 46 million Iraqis. To mitigate impacts, Iraq could increase imports from Türkiye, among other options.

A U.S. embassy spokesman in Baghdad urged the Iraqi government “to eliminate its dependence on Iranian sources of energy as soon as possible.”

Nuclear deal tensions between US and Iran

The waiver for Iraq was introduced in 2018 when Washington reimposed sanctions after Trump abandoned the landmark 2015 nuclear deal negotiated under President Barack Obama. That agreement promised sanctions relief in exchange for Iran curbing its nuclear program.

Though Tehran initially adhered to the nuclear deal after the U.S. withdrawal, it has since rolled back its commitments. U.S. officials now estimate Iran would need just weeks to build a nuclear bomb if it chose to do so.

Iran maintains it has no intention of developing nuclear weapons.

The Iranian mission to the United Nations had indicated some flexibility on Sunday, stating: “If the objective of negotiations is to address concerns vis-a-vis any potential militarization of Iran’s nuclear program, such discussions may be subject to consideration.”

However, the mission added that if the aim was “the dismantlement of Iran’s peaceful nuclear program to claim that what Obama failed to achieve has now been accomplished, such negotiations will never take place.”