One of the sources, who asked not to be named, said the extension was given during a phone call between Prime Minister Adel Abdel Mahdi and US Secretary of State Mike Pompeo, Reuters reported.
Iraq was first granted an exemption on Iranian electricity imports after Washington reimposed sanctions on Iran’s oil industry in November.
It has extended the waiver several times since then but has urged Iraq to develop its energy infrastructure to reduce reliance on Iranian energy.
Iraq relies heavily on Iranian gas to feed several power stations, importing roughly 1.5 billion cubic feet per day via pipelines in the south and east.
Summer temperatures in Baghdad are already topping seasonal averages, boosting electricity consumption and raising fears of a repeat of last summer’s mass protests over power outages.
To compensate, Iraq pipes in up to 28 million cubic meters of Iranian gas a day for power generation and also directly imports up to 1,300 megawatts of Iranian electricity.
Although Iraq has one of the world’s largest natural gas reserves, it has moved slowly to develop them and has relied on Iran to supply it with gas and electricity.