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.
The country, Opec’s second-largest oil producer, is not self-sufficient in gas or electricity and relies on Iran to make up part of the shortfall. It has been granted such waivers for Iranian gas and electricity imports for more than a decade, including under US President Donald Trump's first administration.
"The US Department of State did not renew the waiver for Iraq to purchase Iranian electricity," a State Department representative told Reuters.
"This decision is in line with National Security Presidential Memorandum 2 and ensures we do not allow Iran any degree of economic or financial relief," said the representative.
The previous 120-day waiver, granted under former president Joe Biden, expired on Saturday and Mr Trump’s administration had signalled its intention not to renew it as part of its “maximum pressure” campaign, which aims to curb Iranian influence in the region and prevent Tehran from exploiting Iraq's financial system.
Farhad Alaaldin, foreign affairs adviser to Iraqi Prime Minister Mohammed Shia Al Sudani, said Iraq was working towards energy independence but needed more time.
“Over the past year, the government has taken significant steps to expand domestic production, invest in renewable energy projects, and enhance partnerships with international companies to modernise infrastructure and increase generation capacity,” Mr Alaaldin told The National.
“Major projects are under way to develop natural gas resources, expand power plants, and integrate alternative energy sources, with a clear vision of achieving long-term sustainability. However, these developments require time and continued co-operation with global partners,” he said.
“Any disruption to existing energy arrangements before viable alternatives are fully realised could slow this progress and impact millions of Iraqis who depend on uninterrupted electricity supply.”
Iraqi efforts show progress
Iranian electricity and gas imports, which accounted for up to 40 per cent of Iraq's power supply in 2023, are essential to meet the country's energy needs, particularly during the extreme heat of summer when demand reaches its highest levels.
“Despite new energy links and ongoing efforts to expand domestic production, Iraq may find it difficult to completely replace Iranian energy supplies in the short term,” said Umud Shokri, senior visiting fellow at George Mason University and energy strategist.
“Iraq has made significant progress in diversifying its energy sources and reducing its reliance on Iranian imports, which could help mitigate the impact of potential sanctions,” Mr Shokri told The National.
Following a three-year pause, Turkey restarted electricity exports to Iraq in 2024, and Iraq now intends to double its imports from Turkey to 600 megawatts.
Last year, Iraq also signed an agreement with Turkmenistan to import 20 million cubic metres of gas daily to generate electricity.
Iraq began importing electricity from Jordan via a 340-kilometre line in March 2024, and aims to connect to the Gulf Cooperation Council's (GCC) power grid by late this year.
“To navigate this crisis, Iraq must also implement financial reforms and demonstrate efforts to align with US policies, including cracking down on alleged illicit oil exports to Iran,” said Mr Shokri.
Iraqi fuel oil, occasionally mixed with Iranian oil, is being illegally exported to conceal the true origin of the Iranian product, media reports say
“Diplomatic engagement will be crucial, emphasising the potential political instability and social unrest caused by energy shortages,” Mr Shokri said.
Falling reliance
Iraq’s imports of Iranian gas and electricity have shrunk in recent months as Iran grapples with high heating demand during the winter.
Iran's energy contribution to Iraq has fallen from 10 gigawatts to 1.5 gigawatts, due to Iran cutting two-thirds of electricity exports and 85 per cent of its committed winter gas supply, according to a report published this week by the Washington Institute for Near East Policy (Winep).
Iran's 2024 energy cut-off revealed Iraq's potential for energy independence, the report said.
“Iraq only lost 5.2 gigawatts of power last winter because it had not made preparations to replace Iranian supplies by burning greater quantities of available crude and fuel oil, plus light diesel oil,” the report said.
“Even then, Iraq did salvage 3.3 gigawatts with no advance notice just by switching parts of three plants to Iraqi liquid fuel.”
Winep said that if Iraq were ready for such a transition this summer, up to 8.1 gigawatts of the 8.8 gigawatts of Iranian-powered generation could be shifted to liquid feedstock, with most of it already available in Iraq’s inventory.
One possible reason fuel oil has not been redirected to power generation is that Iraq’s pro-Iranian militias have earmarked it for smuggling operations to international markets, the report added.
Kurdistan exports
The US may have seen the sanctions waiver review as a way to increase pressure on Baghdad to allow Kurdish crude oil exports via Turkey, Reuters reported on Friday, citing sources.
A 970km pipeline transports Iraqi crude oil, primarily from the Iraqi-Kurdish Kirkuk area, to export terminals at Ceyhan on Turkey's Mediterranean coast.
Last week, an association of eight international oil companies operating in Iraq’s Kurdistan region said they would not resume oil exports through Ceyhan, despite an earlier announcement from Baghdad that the restart was imminent.
The companies want guarantees that their current contractual agreements will be honoured.
In March 2023, Turkey suspended the flow of about 450,000 barrels of Iraqi oil daily through the Ceyhan pipeline, of which 370,000 bpd originated from the Kurdistan region.
The stoppage came after an arbitration court ruled in favour of Baghdad, saying Ankara had breached a 1973 agreement when it allowed the Iraqi Kurdistan administration to pump without the consent of the federal government in Baghdad.
More from Mohammed Alardhi
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
Europe’s rearming plan
Suspend strict budget rules to allow member countries to step up defence spending
Create new "instrument" providing €150 billion of loans to member countries for defence investment
Use the existing EU budget to direct more funds towards defence-related investment
Engage the bloc's European Investment Bank to drop limits on lending to defence firms
Create a savings and investments union to help companies access capital
The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
Fireworks/ flares
Radios or power banks
Laser pointers
Selfie sticks/ umbrellas
Sharp objects
Political flags or banners
Bikes, skateboards or scooters
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
While you're here
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
%3Cp%3E%3Cstrong%3EProcessor%3A%3C%2Fstrong%3E%20Apple%20M3%2C%208-core%20CPU%2C%20up%20to%2010-core%20CPU%2C%2016-core%20Neural%20Engine%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%2013.6-inch%20Liquid%20Retina%2C%202560%20x%201664%2C%20224ppi%2C%20500%20nits%2C%20True%20Tone%2C%20wide%20colour%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMemory%3A%3C%2Fstrong%3E%208%2F16%2F24GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStorage%3A%3C%2Fstrong%3E%20256%2F512GB%20%2F%201%2F2TB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EI%2FO%3A%3C%2Fstrong%3E%20Thunderbolt%203%2FUSB-4%20(2)%2C%203.5mm%20audio%2C%20Touch%20ID%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EConnectivity%3A%3C%2Fstrong%3E%20Wi-Fi%206E%2C%20Bluetooth%205.3%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%2052.6Wh%20lithium-polymer%2C%20up%20to%2018%20hours%2C%20MagSafe%20charging%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECamera%3A%3C%2Fstrong%3E%201080p%20FaceTime%20HD%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EVideo%3A%3C%2Fstrong%3E%20Support%20for%20Apple%20ProRes%2C%20HDR%20with%20Dolby%20Vision%2C%20HDR10%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAudio%3A%3C%2Fstrong%3E%204-speaker%20system%2C%20wide%20stereo%2C%20support%20for%20Dolby%20Atmos%2C%20Spatial%20Audio%20and%20dynamic%20head%20tracking%20(with%20AirPods)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EColours%3A%3C%2Fstrong%3E%20Midnight%2C%20silver%2C%20space%20grey%2C%20starlight%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIn%20the%20box%3A%3C%2Fstrong%3E%20MacBook%20Air%2C%2030W%2F35W%20dual-port%2F70w%20power%20adapter%2C%20USB-C-to-MagSafe%20cable%2C%202%20Apple%20stickers%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh4%2C599%3C%2Fp%3E%0A
Company profile
Name: Tratok Portal
Founded: 2017
Based: UAE
Sector: Travel & tourism
Size: 36 employees
Funding: Privately funded
UAE Falcons
Carly Lewis (captain), Emily Fensome, Kelly Loy, Isabel Affley, Jessica Cronin, Jemma Eley, Jenna Guy, Kate Lewis, Megan Polley, Charlie Preston, Becki Quigley and Sophie Siffre. Deb Jones and Lucia Sdao – coach and assistant coach.
The specs: 2018 Maxus T60
Price, base / as tested: Dh48,000
Engine: 2.4-litre four-cylinder
Power: 136hp @ 1,600rpm
Torque: 360Nm @ 1,600 rpm
Transmission: Five-speed manual
Fuel consumption, combined: 9.1L / 100km
Nepotism is the name of the game
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.
The specs
Engine: 4-litre twin-turbo V8
Transmission: eight-speed PDK
Power: 630bhp
Torque: 820Nm
Price: Dh683,200
On sale: now
The specs: 2018 Ducati SuperSport S
Price, base / as tested: Dh74,900 / Dh85,900
Engine: 937cc
Transmission: Six-speed gearbox
Power: 110hp @ 9,000rpm
Torque: 93Nm @ 6,500rpm
Fuel economy, combined: 5.9L / 100km
Squads
Australia: Finch (c), Agar, Behrendorff, Carey, Coulter-Nile, Lynn, McDermott, Maxwell, Short, Stanlake, Stoinis, Tye, Zampa
India: Kohli (c), Khaleel, Bumrah, Chahal, Dhawan, Shreyas, Karthik, Kuldeep, Bhuvneshwar, Pandey, Krunal, Pant, Rahul, Sundar, Umesh
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions