The United States has declined to renew a waiver that had allowed Iraq to buy electricity from Iran without running afoul of sanctions, the U.S. Embassy in Baghdad said Sunday

The U.S. ends a waiver allowing Iraq to buy Iranian electricity, as the Trump administration exerts pressure on Iran while claiming to be willing to negotiate with the Islamic Republic.

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Washington has declined to renew a sanctions waiver that allowed Iraq to buy electricity from neighbouring Iran, a spokesperson for the American embassy in Baghdad said on Sunday.

The United States has rescinded a waiver allowing Iraq to purchase electricity from Iran as part of President Donald Trump’s maximum pressure campaign against Tehran, the State Department said on Sunday.

The Trump administration revoked a waiver on Saturday that had allowed Iraqi authorities to pay Iran for electricity as part of President

Washington has declined to renew a sanctions waiver that allowed Iraq to buy electricity and gas from neighbouring Iran.

Baghdad is hoping to avoid an electricity crisis when it is no longer able to import energy from Iran after a United States sanctions waiver expires. It is looking to other gas sources and boosting the production of renewable energy,

Iraq has no immediate alternatives to compensate for the energy imported from Iran, which will cause a significant problem in providing enough electricity to meet domestic consumption, especially in the summer,

Move to stop permitting Iraqi purchases of Iranian energy will tighten sanctions but stress a U.S. partner in the region.