Iraq, KRG reach deal to resume oil exports via Türkiye's Ceyhan port

Iraq's Kurdish Regional Government (KRG) announced Tuesday it has reached an understanding with Baghdad to resume oil exports through the northern pipeline to Türkiye's Ceyhan port, providing a critical alternative route as the Strait of Hormuz remains closed. The deal offers some relief to global energy markets grappling with supply disruptions from the widening Middle East conflict.

'Extraordinary circumstances' drive decision

KRG Prime Minister Masrour Barzani announced on X that the region decided to allow oil to flow again through its pipeline "as soon as possible," citing "the extraordinary circumstances facing the country and the responsibility we all share to get through this difficult chapter." Barzani said discussions with the federal government will continue "with urgency to lift the restrictions on imports and trade" into the Kurdish region and to secure guarantees for oil and gas companies to resume production safely.

US welcomes breakthrough

US Ambassador to Türkiye and special envoy for Syria Tom Barrack expressed gratitude to both sides, writing on X: "Many thanks to Erbil and Baghdad for their work to reach agreement at this critical time to resume energy exports and improve prosperity for the region." He added that their "courage, steadfast cooperation, and commitment to the diplomatic path have been truly invaluable." Barrack also conveyed President Donald Trump's greetings during a phone call with Barzani and praised the KRG's willingness to cooperate with the federal government.

Hormuz disruption drives urgency

The agreement comes as global energy markets reel from the effective closure of the Strait of Hormuz since March 1, following Iran's retaliation against US-Israeli attacks that began Feb. 28. Before the conflict, approximately 20 million barrels of oil—one-fifth of global supply—passed through the strait daily. Its disruption has pushed oil prices sharply higher. Iraq's Oil Ministry had warned that continued suspension of northern exports would deprive the country of "significant financial resources that could partially offset losses from halted southern exports."

Ongoing negotiations

Barzani said talks with Baghdad were ongoing and that he had instructed the KRG negotiating team to provide all necessary facilitation to restart exports in a way that "serves citizens' interests amid the current circumstances." He called on the US to continue its role as monitor and supporter of negotiations, particularly on customs and trade restrictions. The breakthrough offers a rare positive development in a region otherwise consumed by escalating violence and economic disruption.