Baghdad: Iraq's Kurdish Regional Government (KRG) has announced a resolution with Baghdad to recommence oil exports via the region to Trkiye's Ceyhan port. KRG Prime Minister Masrour Barzani conveyed that the region decided to restart the oil flow through its pipeline promptly, acknowledging the pressing circumstances facing the country and the shared responsibility to navigate this challenging period.
According to Anadolu Agency, Barzani emphasized ongoing discussions with the federal government in Baghdad, focusing on lifting restrictions on imports and trade into the Kurdish region and securing guarantees for oil and gas companies to safely resume production. He expressed gratitude to the US for its support in facilitating the process. Iraq's Oil Minister, Hayan Abdel Ghani, confirmed that crude exports through Trkiye's Ceyhan port would resume at 10 a.m. on Wednesday, as reported by the Iraqi News Agency.
This development comes amid global energy concerns centered around the Strait of Hormuz, following its closure by Iran's Islamic Revolutionary Guard Corps in retaliation for US-Israeli attacks beginning February 28. The strait's disruption, which previously saw around 20 million barrels of oil pass through daily, has contributed to increasing oil prices.
Tom Barrack, the US ambassador to Trkiye and special envoy for Syria, extended appreciation to both Erbil and Baghdad for achieving the agreement. He commended their courage and commitment to diplomatic efforts, asserting the United States' continued support during this crisis.
In a separate statement, the KRG mentioned that Barzani received a call from Barrack, where they discussed regional developments. Barrack conveyed US President Donald Trump's greetings and lauded Barzani's cooperation with the federal government to resume oil exports. Barzani indicated ongoing talks with Baghdad and urged the US to maintain its role as a monitor and supporter of negotiations, particularly regarding customs and trade restrictions.
On Sunday, Iraq's Oil Ministry had indicated readiness to restart crude exports through the northern pipeline to Ceyhan, amidst disruptions in southern export routes linked to the regional crisis and navigation issues in the Strait of Hormuz. However, the Kurdish Regional Government's Ministry of Natural Resources had previously set conditions for restarting the export pipeline, which Baghdad considered unrelated to crude oil export operations. The ministry reiterated the importance of resuming exports in alignment with national interests and legal frameworks to counter financial losses from halted southern exports.
Iran's closure of the Strait of Hormuz followed joint US-Israeli attacks against Iran, escalating tensions with retaliatory strikes by Iran targeting various regions, affecting global markets and infrastructure.