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BAGHDAD - 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The Trump administration has withdrawn a waiver that previously allowed Iraq to pay Iran for electricity. This decision is part of President Donald Trump’s 'maximum pressure' strategy which aimed to increase economic and political

The US administration is urging the Iraqi government to eliminate its dependence on Iranian sources of energy as soon as possible.

Although Iraq had been granted the waiver, the US has repeatedly urged Baghdad to reduce its dependence on Iran for energy. The State Department reiterated this message, calling Iran an "unreliable energy supplier" and emphasising the need for Iraq to sever ties with Iranian energy sources as soon as possible.

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.

The US refused to renew a 120-day sanctions waiver for Iraq’s energy imports from Iran, raising the prospect of severe electricity shortages in coming months as demand increases with the rising temperatures.