Iraq and Turkey strike a 1-year oil pipeline deal to boost exports during ongoing Hormuz closures

Iraq and Turkey have signed a one-year deal to increase oil exports through a pipeline to Turkey's Mediterranean port of Ceyhan. This agreement aims to diversify Iraq's export routes and reduce its reliance on the Strait of Hormuz, which has experienced disruptions due to the U.S.-Iran war. The deal allows for a minimum export volume of 750,000 barrels of Iraqi crude per day. This move is considered a strategic milestone for ensuring uninterrupted oil exports and strengthening economic cooperation between the two nations. The pipeline, largely idle since 2023, saw limited exports resume last year. This agreement comes as Iraq seeks to bolster its oil export infrastructure resilience.

Turkiye and Iraq have signed a one-year agreement to resume crude oil flow through the Kirkuk-Ceyhan Oil Pipeline. The deal, finalized by Turkish state firm BOTAS and Iraqi state oil companies SOMO and NOC, ensures a daily capacity of 750,000 barrels. This transit arrangement was signed following a meeting between the Turkish and Iraqi Energy Ministers in Ankara, just days after the previous bilateral arrangement expired. Iraqi Prime Minister Ali al-Zaidi described the agreement as a strategic milestone, and both governments will work on a long-term framework for broader cooperation. The renewed deal is considered strategically important given current global oil market developments.