The Biden administration has extended by four months a sanctions waiver that will allow Iraq to continue to purchase electricity from Iran and give Iran limited access to the proceeds to buy humanitarian goods.
Secretary of State Antony Blinken signed the 120-day waiver extension and it was transmitted to Congress on Tuesday, US officials said.
The move is likely to draw criticism from Iran hawks on Capitol Hill and elsewhere who believe the extension will reward Iran at a time when it is coming under increasing pressure to end its support for proxy groups, including Hamas, that are destabilising the Middle East.