Iraqi Kurdistan Awaits Turkey's Green Light for Oil Flow Resumption

Iraq is expecting Turkey's approval to restart oil exports from the Kurdish region, according to Iraqi officials. A resolution is anticipated in a week, amidst U.S. pressure on Iraq to resume exports. The pipeline has been halted since March 2023 due to a legal ruling against Turkey.

Iraq is on the verge of restarting oil exports from the semi-autonomous Kurdish region, pending approval from Turkey. The Iraqi oil minister, Hayan Abdel-Ghani, expressed optimism about resolving the issue within a week. Exports could resume within two days, a crucial development for the region's oil industry.

The halt in oil flow from the Kurdish region came in March 2023 when the International Chamber of Commerce ordered Turkey to pay Iraq $1.5 billion in damages for unauthorized exports. Both the Kurdish regional authorities and Iraq's federal oil ministry are aligned on restarting the exports based on available volumes.

There are reports of the Trump administration applying pressure on Iraq to allow the resumption of Kurdish oil exports or face potential sanctions akin to those imposed on Iran. Officials, however, have denied any such pressure. Resuming exports could mitigate the impacts of diminishing Iranian oil availabilities due to U.S. sanctions on Tehran.

(With inputs from agencies.)