Baghdad and Ankara Sign One-Year Oil Export Deal Amid Geopolitical Tensions
Baghdad and Ankara have signed a one-year interim agreement allowing Iraq to export oil through the Iraq-Turkey Pipeline (ITP) corridor. This deal, signed on August 1, 2026, aims to facilitate the movement of 750,000 barrels per day (bpd) of Iraqi crude, significantly higher than the current 170,000-200,000 bpd level. The agreement comes after a two-and-a-half-year halt in oil flows due to a legal dispute, where Turkey was ordered to pay Baghdad $1.5 billion for breaching a previous pipeline agreement. The new deal is crucial for Iraq, which relies heavily on oil exports for its budget, especially as the Strait of Hormuz remains blockaded. The agreement also highlights ongoing tensions between Baghdad and the Kurdistan Region of Iraq over independent oil sales, a core issue in their relations since 2014. 
