US Works to Secure Long-Term Kurdish Oil Exports After Deal

The Trump administration is actively working to ensure the long-term viability of oil exports from northern Iraq, which recently resumed after a two-year suspension. The goal is to bolster the Iraqi economy, provide opportunities for US companies, and counter Iranian influence in the region. According to a senior State Department official, who requested anonymity, the focus is on implementing the export agreement and ensuring that its financial terms are upheld.

Efforts to facilitate this deal involved extensive coordination between international oil companies and both the Iraqi and Kurdish governments. The official noted that hundreds of phone calls and meetings were conducted in recent weeks to bring the agreement to fruition.

Strengthening the Export Pact

The United States played a crucial role in facilitating the deal that allows for shipments to resume through a pipeline connecting to Turkey’s Mediterranean coast. The current agreement is set to last until the end of 2023, with discussions planned regarding the hundreds of millions of dollars owed to the participating companies. Additionally, Turkey is advocating for new terms concerning the transportation of crude oil.

Secretary of State Marco Rubio expressed in a recent post on social media that the agreement will yield tangible benefits for both Americans and Iraqis while reinforcing Iraq’s sovereignty. US pressure has been a significant factor in the establishment of the export deal, and there is now a concerted effort to transition this pact into a sustainable long-term arrangement that will safeguard the interests of US businesses.

Despite the US efforts, the oil ministries of Iraq and the Kurdistan region did not respond to inquiries regarding the US involvement in the negotiations. The Association of the Petroleum Industry of Kurdistan, representing various companies in the sector, welcomed the agreement that has enabled oil exports through the pipeline.

Recent Challenges and Strategic Implications

Since the Turkish pipeline closure in March 2023, some Kurdish oil has been transported to Iran and Turkey via trucks as alternative market solutions were sought, according to the US Energy Information Administration. In July, discussions to resume exports gained momentum, although the Kurdistan region faced attacks on its oil infrastructure, which Kurdish security forces attributed to Iran-backed militias. No group has claimed responsibility for these incidents.

The resumption of oil exports from Kurdistan also serves to mitigate a potential decrease in Iranian oil exports. The US has stated its intention to cut Iranian oil exports to zero as part of President Donald Trump’s “maximum pressure” campaign against Tehran.

With these developments, the US aims to not only support the Iraqi economy but also to create a more stable and secure energy landscape in the region, aligning with its broader strategic interests.