• Crude oil exports from Iraq's Kurdistan region to Turkey resumed after a 2.5-year halt.
• The agreement includes the export of 180,000 to 230,000 barrels per day through the Iraq-Turkey pipeline.
• The U.S. government played a role in facilitating this agreement amid broader OPEC+ strategies to increase oil output.

Crude oil exports from Iraq's semi-autonomous Kurdistan region to Turkey resumed on Saturday for the first time in over two years, following a legal and technical deadlock that began in March 2023. The restart occurred at around 6 a.m. local time, according to Iraq’s oil ministry, amidst ongoing efforts to boost economic cooperation and energy security in the region. Previously, the pipeline was shut after the International Chamber of Commerce ruled that Turkey should pay $1.5 billion in damages for unauthorized Kurdish oil exports, which Baghdad claimed violated its authority, according to Reuters and Middle East Eye.

The agreement facilitating the resumption allows for an initial flow of approximately 180,000 to 190,000 barrels per day, with projections of rising to 230,000 barrels per day as operations stabilize. This will enable the Iraqi federal government’s State Organization for Marketing of Oil (SOMO) to manage Kurdish oil exports, which previously had been independently conducted by the Kurdish regional authorities. The U.S. has expressed support, with Secretary of State Marco Rubio labeling the deal as beneficial for both Iraqi and U.S. interests, according to Reuters and India Times.

Turkish Energy Minister Alparslan Bayraktar confirmed the restart of oil flow through the Iraq-Turkey pipeline at 7:07 a.m. local time. This pipeline, which has a combined capacity exceeding 1.5 million barrels a day, plays a critical role in connecting Iraq's oil fields to European markets, enhancing Turkey's strategic position in regional energy diplomacy. The Turkish government emphasized the pipeline's importance for diversifying energy sources and furthering economic ties with Iraq, as stated by AA and AA.

Additionally, the resumption is part of wider initiatives involving OPEC+ countries, aiming to increase oil production and market share amidst fluctuating global oil prices. The Kirkuk-Ceyhan pipeline's reopening aims to significantly boost Iraq’s oil export capacity, which could eventually help alleviate revenue losses estimated at over $35 billion since the previous export halt, according to Middle East Eye and Al Jazeera.