Move to stop permitting Iraqi purchases of Iranian energy will tighten sanctions but stress a U.S. partner in the region.

Iraq has no immediate alternatives to compensate for the energy imported from Iran, which will cause a significant problem in providing enough electricity to meet domestic consumption, especially in the summer,

Iraqi Prime Minister Mohammed Shia’ al-Sudani on Sunday looked into ways to increase the country’s electricity production, hours after the United States rescinded a key waiver allowing Iraq to import energy from Iran.

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The Trump administration rescinded a waiver on Saturday that had allowed Iraq to pay Iran for electricity, as part of President Donald Trump's "maximum pressure" campaign against Tehran, a State Department spokesperson said.