Iraq to resume oil exports through Turkey's Ceyhan port

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BAGHDAD: Iraq has officially restarted oil exports from its northern Kirkuk fields to the Turkish port of Ceyhan. This follows a breakthrough agreement between the central government in Baghdad and the Kurdistan Regional Government (KRG) in Erbil. Currently, 250,000 barrels per day (bpd) are flowing through the pipeline, and officials suggest this could soon be boosted by an additional 200,000 bpd from the Kurdistan region.

This move provides a vital lifeline for Iraq’s economy. The ongoing war has severely disrupted shipping through the Strait of Hormuz, causing Iraq’s total production to plummet from 4.2 million bpd to just 1.4 million bpd. By opening this northern route, Iraq aims to bypass regional blockades and stabilize its national revenue, which has been crippled as exports fell from a pre-war average of 3.4 million bpd to a near-total halt.

The deal also follows significant diplomatic pressure from the United States. US Ambassador Tom Barrack praised both sides for their cooperation, as increasing the oil supply is essential to lowering global prices. The impact on global markets was instantaneous. Following the announcement, Brent crude dipped 1.38% to $101.99 a barrel, while West Texas Intermediate fell 1.89% to $94.39, offering modest relief to a market rattled by Middle Eastern supply fears.

Despite the progress, some tensions remain. The KRG agreed to the flow of oil due to the country's "extraordinary circumstances," but they continue to push Baghdad to lift trade restrictions and provide better security against militia attacks. To ensure long-term stability, Iraq is also exploring alternative overland routes through Syria and Jordan and repairing older pipelines that have been idle for a decade.

However, the deal remains fragile as underlying political friction persists. While the KRG sanctioned the resumption of oil flows citing the nation’s "extraordinary circumstances," Erbil continued to pressure Baghdad to repeal restrictive trade policies and provide robust security guarantees. The region's energy infrastructure remains vulnerable to "outlawed militias," whose recent assaults have previously forced production offline.

To bolster long-term energy security and bypass volatile maritime corridors, Baghdad is aggressively pursuing a diversification strategy. Oil Minister Hayyan Abdul Ghani confirmed that Iraq is exploring overland export routes through Syria and Jordan. Simultaneously, technical teams are working to rehabilitate the original Kirkuk-Ceyhan pipeline, an essential energy artery that has been largely idle for over a decade due to conflict-related damage.