The United States is putting pressure on Iraq to restart pipeline exports of Kurdish oil to Turkey, while also urging Baghdad to halt Kurdish oil smuggling to Iran. The move comes as Iraq’s economy struggles and its ally Iran relies heavily on the country for economic support.
However, resuming Kurdish oil exports faces several technical and payment hurdles. Analysts say that restarting the pipeline could raise questions about Iraq’s compliance with OPEC+ agreements.
Sources close to the negotiations have confirmed the talks between US officials and Iraqi representatives. The goal is to find a solution that benefits both countries and meets international standards.
Iraq’s economy has been experiencing difficulties, including a decline in oil exports. The country relies heavily on Kurdish oil, which contributes significantly to its revenue. As a result, Baghdad seeks ways to increase its oil production and export volumes to meet growing energy demands.
The US is also seeking to strengthen its relations with Iraq, particularly through economic cooperation. However, the situation remains complex due to differing interests between Baghdad and Erbil, the capital of the Kurdistan Region in Iraq.
Iran views Iraq as a vital partner for its economy, which has been struggling due to international sanctions. The two countries have long-standing ties, and their bilateral relations are closely monitored by regional powers.
Source: https://www.reuters.com/business/energy/us-piles-pressure-iraq-resume-kurdish-oil-exports-sources-say-2025-02-21