Iraq-Turkey Pipeline: Resumed Oil Exports Signal Improved Baghdad-Erbil Relations

Iraq is set to resume oil exports through the Iraq-Turkey pipeline, ending a two-year dispute between Baghdad and the Kurdistan region. The U.S. administration had previously put pressure on Iraq to allow Kurdish oil exports, though an Iraqi official denied any threat of sanctions.

In a move to resolve a longstanding dispute, Iraq has announced the completion of all procedures for the resumption of oil exports via the Iraq-Turkey pipeline. The nine-day delay in the restart of oil exports caused significant disruptions in crude flows since tensions emerged nearly two years ago.

The decision marks a significant thaw in relations between Baghdad and the semi-autonomous Kurdistan region. Iraq's oil minister confirmed on Monday that the oil exports from Kurdistan will resume next week, helping to ease the strain on the regional crude market.

The U.S. administration had previously exerted pressure on Iraq to permit Kurdish oil exports. While sources indicated a threat of sanctions similar to those imposed on Iran, Iraqi officials refuted any allegations of such pressure.

(With inputs from agencies.)