The United States is reviewing all sanctions waivers that provide Iran with economic relief and urged Iraq to reduce its reliance on Iranian energy, State Department spokesperson Tammy Bruce said on Thursday.
Asked whether Washington would renew a waiver allowing Iraq to pay Iran for electricity, Bruce told reporters, "We are reviewing all existing sanctions waivers that provide Iran any degree of economic or financial relief."
A decision on whether to renew the waiver on the funds, which by November totaled $10 billion, is due on March 8.
"We are urging the Iraqi government to eliminate its dependence on Iranian sources of energy as soon as possible and welcome the Iraqi Prime Minister's commitment to achieve energy independence."
A decision to renew the waiver in the waning days of the Joe Biden administration stoked the ire of Republicans who criticized the Donald Trump's predecessor for allegedly being too soft on Tehran.
Trump reimposed his "maximum pressure" campaign of sanctions aimed at depriving Iran of revenue as he seeks to cajole Iran into guaranteeing it will not acquire a nuclear weapon. Iran insists its nuclear program is peaceful.
The funds were mandated for use on humanitarian needs such as medicines, according to the Biden State Department instructions.
However, its Republican detractors maintain that the money is fungible, allowing Tehran to divert its dwindling cash reserves to its military or regional allies such as Hamas, Hezbollah and Houthi fighters in Yemen.
During the previous Trump administration the waiver was in force but access to the funds was stricter, his supporters have argued.
