US extends Iraq waiver over Iran sanctions

The United States is extending a waiver to let energy-hungry Iraq keep buying power from Iran, despite Washington's campaign of sanctions aimed at curbing Tehran, an official said.

The State Department issued a second three-month exemption from Iran sanctions for Iraq, mindful not to destabilise the war-torn country increasingly reliant on Iranian gas and electricity to cope with chronic blackouts that have triggered unrest.

"While this waiver is intended to help Iraq mitigate energy shortages, we continue to discuss our Iran-related sanctions with our partners in Iraq," a State Department official said.

The official said that increasing Iraq's capacities and diversifying imports "will strengthen Iraq's economy and development as well as encourage a united, democratic and prosperous Iraq free from malign Iranian influence."