Washington has granted Iraq an additional 120-day exemption to purchase Iranian gas for energy production, the State Department announced. However, no funds will be transferred to Iran as part of this arrangement.
On Thursday, US Deputy State Department spokesperson Vedant Patel confirmed at a news conference that the extension is valid for four months.
Iraq relies on Iranian gas imports to support its energy sector. In response to US sanctions against Iran, Baghdad will deposit funds in an Iraqi bank account, subject to Washington’s approval, and use them only for humanitarian purposes, including the purchase of Iranian medical equipment.
Addressing the concerns of some United Nations members about the potential misuse of funds, Patel stated, “It doesn’t matter when this money is deposited; it is incorrect to send this money to Iran.”
This marks the 22nd time since 2018 that Iraq has been granted a sanctions exemption.
“In recent years, we have seen significant steps from Iraq to reduce its reliance on external energy sources,” Patel said.
US Deputy State Department spokesperson Patel added, “In recent years, Iraq has doubled its domestic energy production.