Iraq restarts oil flow to Turkey to bypass Hormuz disruptions

Iraq has resumed oil exports from its northern Kirkuk fields to Turkey’s Ceyhan port, in a bid to offset disruptions to shipments through the Strait of Hormuz, reports The New Arab staff and agencies on March 19th.

The exports began on the morning of March 18th following an agreement between Baghdad and the Kurdistan Regional Government, marking the first flow through the pipeline since it was halted in March 2023. Oil Minister Hayan Abdul Ghani said volumes are expected to reach 250,000 barrels per day within two days, accounting for roughly 7–8% of Iraq’s pre-crisis export levels.

The move comes as Iraq’s oil sector faces mounting pressure from regional instability. National production has fallen sharply from around 4.3 million barrels per day to between 1.3 and 1.6 million, significantly constraining the country’s main source of revenue.

Kirkuk’s oilfields—among Iraq’s oldest and most productive—are seen as a crucial alternative export route. Before the disruption, around 80% of Iraq’s oil exports were shipped from southern terminals reliant on access through the Gulf.

US Special Envoy Tom Barrack said he had helped facilitate the agreement, describing it as a step towards easing tensions. Kurdistan Region Prime Minister Masrour Barzani called the decision a response to “exceptional circumstances”, adding that talks with Baghdad would continue over broader energy issues.

However, analysts caution that the restart offers only limited relief. Economic expert Kamran Qadir said the volumes transported through the Kurdistan pipeline would not be enough to compensate for any major disruption in southern exports, which remain heavily dependent on Hormuz.

With oil revenues accounting for more than 90% of Iraq’s state budget, prolonged export interruptions could pose a serious threat to economic stability. Qadir warned that in the event of further escalation, Iraq may only be able to withstand the impact for a matter of months.

While officials have floated alternative export routes through Syria and Jordan, these plans face logistical and infrastructural challenges. For now, the resumption of Kirkuk exports represents a short-term workaround rather than a long-term solution to Iraq’s energy vulnerabilities.

The New Arab staff and agencies, Maghrebi.org