Baghdad rebuffs U.S. on Iran trade

WASHINGTON — The Trump administration is pressuring Iraq to stop buying energy from its neighbor and sole foreign supplier, Iran, in what has become a major point of conflict between Washington and Baghdad.

Iraqi leaders, fearing that a further shortfall in power would lead to mass protests and political instability in their electricity-starved country, are pushing back on the demand, which is rooted in President Trump’s sanctions against Iran.

Iraq’s defiance further jeopardizes Trump’s goal of getting all nations to comply with sanctions after withdrawing from the deal to limit Tehran’s nuclear program last year. Already, European nations have set up a legal financial mechanism to do business with Iran, and China and India are resisting U.S. efforts at prodding them to cut off oil purchases.

Tensions rose after Trump said Feb. 3 that he planned to have U.S. troops who have returned to Iraq “watch Iran,” despite Baghdad’s need to maintain cordial ties with its fellow Shiite neighbor.

U.S. officials are seeking to cut off Iraqi purchases of natural gas and electricity, even though the country relies on those for a good portion of its energy needs.

Iraq’s energy production and grid capabilities have lagged since the U.S.-led invasion of 2003, and blackouts in cities are common, even with the current purchases. The energy shortfall is especially acute in the sweltering summers, which has led to large protests.

Iranian natural gas is the single most critical energy import in Iraq, but U.S. officials say purchases must end now because gas falls under the U.S. sanctions. Iraqi officials said the U.S. demand acknowledges neither Iraq’s energy needs nor the complex relations between Baghdad and Tehran.