Iraq and Turkey strike a 1-year oil pipeline deal to boost exports during ongoing Hormuz closures
Summary
Iraq and Turkey have agreed to increase oil exports through a pipeline to the Turkish port of Ceyhan for one year. This deal aims to reduce Iraq’s dependence on Gulf shipping routes, which have been disrupted due to conflicts in the Strait of Hormuz.Key Facts
- Iraq and Turkey signed a one-year deal to boost oil exports via the Kirkuk-Ceyhan pipeline.
- The deal guarantees at least 750,000 barrels of Iraqi oil per day will flow through the pipeline.
- The pipeline was mostly inactive since 2023 due to disputes but had limited exports last year.
- Iraq wants to reduce reliance on shipping through the Strait of Hormuz, affected by the U.S.-Iran war starting in February.
- Before the conflict, Iraq exported about 3.5 million barrels of oil daily, mostly through southern ports using the Strait of Hormuz.
- Current exports are around 200,000 barrels per day, so this deal would increase volume but not reach prewar levels.
- Iraqi Prime Minister Ali al-Zaidi described the deal as a step to ensure steady oil flow and strengthen economic ties with Turkey.
- Plans are being discussed for a new pipeline connecting southern and western Iraq to ports in Turkey and Syria.
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