"An additional 90-day waiver was granted to allow Iraq to continue to pay for electricity imports from Iran," the spokesperson said.
Washington is engaged in ongoing discussions with Baghdad on sanctions against Iran, the official added.
"We are also continuing to work with Iraq to end its dependence on Iranian natural gas and electricity and increase its energy independence," the official said.
The State Department official noted that diversifying energy exports away from Iran would strengthen the Iraqi economy.
Earlier this month, the White House noted it may allow purchasing Iranian crude oil to eight states within the framework of the significant reduction exemptions (SRE) — a waiver on sanctions awarded to them earlier.
Despite the American sanctions on Tehran's oil exports, the revenues from them in the first nine months of the current Iranian year — which runs from 21 March 2018 to 20 March 2019 — have reportedly increased by 48.9 percent year-on-year.
The US granted its first such sanctions waiver for Iraq on December 21, 2018. A month before that, Washington has granted reduction exemptions (SRE) to China, India, Italy, Greece, Japan, South Korea, Taiwan, and Turkey for a period of six months.
The sanctions were re-imposed by Washington against Iranian energy companies and banks on 5 November 2018. Initially, they were lifted under the provisions of the Joint Comprehensive Plan of Action, also known as the Iran nuclear deal. Trump, who has been a critic of the deal since his election campaign, announced that the US would abandon the agreement, which he labelled "flawed at its core" in May 2018. The move was unilateral, with other signatories slamming Washington for the move and expressing readiness to continue to adhere to the deal.