Iraq, KRG strike deal to bypass Hormuz via Turkey as US brokers energy talks

Iraq’s federal government and the Kurdish Regional Government (KRG) announced a breakthrough agreement on Wednesday to resume oil exports through the northern pipeline to Türkiye’s Ceyhan port, providing a critical alternative route as the Strait of Hormuz remains effectively closed.

The deal, facilitated by US diplomacy, comes as Iraq faces severe financial pressure from the disruption of its southern export routes. KRG Prime Minister Masrour Barzani stated that the region decided to allow oil to flow again “as soon as possible,” emphasizing “the extraordinary circumstances facing the country and the responsibility we all share to get through this difficult chapter.”

Iraq’s Oil Minister Hayan Abdel Ghani confirmed that crude exports through Ceyhan will resume on Thursday at 10 a.m. local time . The resumption is expected to partially offset the loss of nearly 2 million barrels per day that have been taken off the market due to the closure of the Strait of Hormuz.

US Ambassador and Special Envoy for Syria, Tom Barrack, expressed gratitude to both Erbil and Baghdad for reaching the agreement. “Their courage, steadfast cooperation and commitment to the diplomatic path have been truly invaluable,” Barrack wrote on X. He added that the United States remains fully committed to supporting these efforts during the crisis .

Discussions between the KRG and Baghdad will continue “with urgency to lift the restrictions on imports and trade” into the Kurdish region and to secure guarantees for oil and gas companies so they can safely resume production. Barzani also called on the US to continue its role as a monitor and supporter of ongoing negotiations, particularly on customs and trade restrictions.

The development highlights how the regional war is forcing traditional rivals to cooperate on energy security. The Ceyhan route had been suspended for years due to legal and financial disputes between Baghdad and Erbil, but the existential threat to oil revenues has compelled both sides to set aside their differences.