Iran said Monday it would not negotiate under "intimidation” after U.S. President Donald Trump sought to ramp up pressure on Tehran by ending a sanctions waiver that had allowed Iraq to purchase electricity from its neighbor.

Iran’s mission to the United Nations indicated Sunday that Tehran might be open to discussions addressing U.S. concerns over the potential militarization of its nuclear program – though not to dismantling it entirely.

However, on Monday, Iran’s top diplomat appeared to shut down such talks, asserting that Tehran’s nuclear program was and would remain entirely peaceful, dismissing any notion of its "potential militarization.”

"We will NOT negotiate under pressure and intimidation. We will NOT even consider it, no matter the subject,” Foreign Minister Abbas Araghchi said on the social media platform X.

Since returning to the White House in January, Trump has reinstated his "maximum pressure” policy against Iran, reimposing sweeping sanctions aimed particularly at crippling its oil industry.

The U.S. State Department said Sunday the decision to revoke Iraq’s sanctions waiver was made to "ensure we do not allow Iran any degree of economic or financial relief.”

Iran supplies a third of Iraq’s gas and electricity, providing Tehran with substantial income.

Never take place

On Sunday, Iran’s mission to the U.N. had taken a more conciliatory stance, suggesting Tehran might be willing to discuss certain issues.

"If the objective of negotiations is to address concerns vis-a-vis any potential militarization of Iran’s nuclear program, such discussions may be subject to consideration,” the mission said in a statement.

"However, should the aim be the dismantlement of Iran’s peaceful nuclear program to claim that what (President Barack) Obama failed to achieve has now been accomplished, such negotiations will never take place,” it added.

The waiver for Iraq was introduced in 2018 when Washington reimposed sanctions on Tehran after Trump withdrew from the nuclear deal negotiated under Obama.

A spokesperson for the U.S. Embassy in Baghdad on Sunday urged Iraq to "eliminate its dependence on Iranian sources of energy as soon as possible.”

"The president’s maximum pressure campaign is designed to end Iran’s nuclear threat, curtail its ballistic missile program, and stop it from supporting terrorist groups,” the spokesman said.

Energy crisis in Iraq

The landmark 2015 nuclear deal, brokered by Obama between Tehran and major world powers, had promised sanctions relief in exchange for Iran curbing its nuclear program.

Tehran, which denies seeking nuclear weapons, initially adhered to the agreement even after Trump pulled out, but later rolled back its commitments. U.S. officials now estimate that Iran could build a nuclear bomb within weeks if it chose to do so.

Trump’s withdrawal from the deal was opposed by European allies, but Washington went on to impose sanctions on any country purchasing Iranian oil. The waiver had been extended to Iraq, which Washington considers a "key partner.”

Despite its vast oil and gas reserves, Iraq remains dependent on energy imports. Baghdad, anticipating the waiver’s end, said it had prepared "for all scenarios.”

The revocation of the waiver is expected to exacerbate power shortages, affecting the daily lives of Iraq’s 46 million people.

Gulf analyst Yesar al-Maleki of the Middle East Economic Survey said Iraq will now struggle to meet electricity demand, especially in the summer.

Iraq has several options to mitigate the impact, including increasing energy imports from Türkiye.