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Iraq Turns to Kurdistan Pipeline to Maintain Global Oil Supply

Iraq is planning a significant boost in Kirkuk oil exports as global tensions disrupt shipping routes. Kirkuk oil exports have become a central focus for Baghdad as it looks for alternatives to the Strait of Hormuz. The government is seeking to transport up to 250,000 barrels per day through the Kurdistan Region’s pipeline to Turkey’s Ceyhan port.

A senior official at Iraq’s oil ministry confirmed that the federal government has formally requested permission from the Kurdistan Regional Government to utilize the regional pipeline. The ministry emphasized that the infrastructure required for large-scale shipments already exists, but political approval remains pending. If approved, the plan could increase current exports significantly, which now fluctuate between 20,000 and 40,000 barrels daily.

Turkey has reportedly raised no objections to the proposed increase, signaling regional cooperation. The ministry official stated that Baghdad is eager to accelerate exports immediately after receiving Kurdistan’s approval. Last week, Iraq had only announced plans to resume exports at a smaller scale of 50,000 barrels per day through the same pipeline. This step indicates Baghdad’s growing urgency to secure alternative routes for oil trade.

The situation has been driven by ongoing hostilities involving Iran, Israel, and the United States, which began on February 28. Iranian forces launched a major counteroffensive using thousands of drones and hundreds of missiles against US and Israeli positions. Meanwhile, the Iranian Revolutionary Guard Corps declared the Strait of Hormuz a restricted war zone, warning commercial ships against passage.

The Strait of Hormuz is a vital energy artery, carrying about 21 million barrels of oil per day and nearly 20 percent of global liquefied natural gas. Additionally, Iraq’s total oil production has dropped sharply from 4.35 million barrels per day due to the war’s impact.

In response, Baghdad is turning to Kirkuk oil exports as an alternative route to stabilize revenue. Officials hope that rerouting shipments through Kurdistan will allow Iraq to maintain its market share in international oil trade. If successful, this strategy could alleviate financial pressures while ensuring energy supplies continue flowing to global markets despite regional instability.

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