Iraq’s oil ministry announced that preparations to restart oil exports via the Iraq-Turkey pipeline are complete. This development follows a near two-year halt in crude shipments from the Kurdistan region, which had been disrupted by disputes between Baghdad and Erbil. Improved relations between the central Iraqi government and the Kurdish regional administration have paved the way for resuming exports.

The suspension began in March 2023 when Turkey halted pipeline operations after an International Chamber of Commerce ruling required Ankara to pay $1.5 billion to Baghdad for unauthorized exports by the Kurdistan Regional Government (KRG) between 2014 and 2018. Recent amendments to Iraq’s federal budget law, which set transport and production costs at $16 per barrel and require the KRG to transfer its oil output to the State Oil Marketing Organization (SOMO), have facilitated the resumption of exports.

This comes amid reports that the Trump administration is pressuring Iraq to restart Kurdish oil exports, allegedly threatening sanctions similar to those on Iran if Baghdad does not comply. Reuters reported that this pressure is part of Trump’s renewed “maximum pressure” campaign against Tehran, aimed at cutting Iranian oil exports to zero to curb its nuclear ambitions. US officials argue that allowing Kurdish oil exports would help offset the loss of Iranian supply in global markets, stabilizing prices and maintaining energy security.