Iraq is now feeling the heat from rising US pressure on Iran. A proposed bill in the US Congress could sharply reduce Iraq’s electricity supply by banning energy imports from Iran. The bill, named the “No Iranian Energy” Act, threatens to cut off nearly 40% of Iraq’s power resources. That percentage reflects how much Iraq depends on Iranian electricity and gas.
Oil expert Nabil al-Marsoumi warned that Iraq could soon face serious electricity shortages. Especially during the hot summer months, demand rises sharply. The country may find it hard to replace Iran’s energy supply in time. The “No Iranian Energy” Act, still under review, would force Iraq to search for costly and limited alternatives.
Therefore, the core of the crisis lies in US sanctions against Iran. Iraq had received waivers in the past, allowing limited energy trade with Iran. But those waivers are no longer active. Now, Iraq is not legally allowed to import Iranian gas or electricity. This change puts Iraq in a tough position. The country must find new energy sources quickly or face more power cuts.
Adding to the pressure, allegations of oil smuggling now surround Iraq. Experts suspect illegal activity at the al-Qayyarah oil field. The site produces 30,000 barrels each day, but Iraq uses only 3,000 barrels domestically. Smugglers may mix the remaining oil with Iranian crude to dodge US sanctions.
Khor al-Zubair’s Berth 41 has become a focus of these suspicions. Reports suggest it plays a key role in the illegal movement of oil. Al-Marsoumi pointed out that the State Organization for Marketing of Oil (SOMO) has admitted that some oil is leaking. Oil leaks at ports like Khor al-Zubair and Umm Qasr, possibly linking them to organized smuggling.
In response, SOMO has pulled out of its role in moving oil from fields to Khor al-Zubair. Starting this month, oil companies are now handling that task. SOMO will still manage sales, but the change could be a way to avoid involvement in growing scandals.
The US-led sanctions are squeezing Iraq from both sides. On one hand, electricity supply is under threat. On the other, oil smuggling charges are casting a shadow over the country’s energy sector. This double pressure leaves Iraq with hard decisions and few easy solutions.