Kurdistan's Black-Market Oil Trade: The Hidden Pipeline to Iran and Turkey

Hundreds of oil tankers travel daily from Erbil, Kurdistan's capital, to Iran and Turkey through unofficial routes. This massive black-market trade has surged following the closure of an official pipeline, leading to a loss of revenue for the Iraqi government. The trade involves over 1,000 tankers and generates about $200 million a month.

Hundreds of oil tankers travel daily from Erbil, Kurdistan's capital, to Iran and Turkey through unofficial routes, clogging the region's highways. This massive black-market trade has surged following the closure of an official pipeline last year.

Over 1,000 tankers carry at least 200,000 barrels of cut-price oil each day, generating about $200 million a month. The trade involves murky off-the-books transactions, according to over 20 sources including oil engineers, traders, and diplomats.

The Iraqi government has denounced the trade, claiming it lacks proper approval and accountability. Meanwhile, the issue threatens to put Kurdistan at odds with Washington over potential U.S. economic sanction breaches on Iran.

(With inputs from agencies.)