Resumed Pipeline Exports Amidst Rising Tensions in Iraqi Kurdistan

Amid sustained drone attacks targeting the region's oilfields, Iraqi Kurdistan is set to resume its oil exports through a crucial pipeline to Turkey, according to the federal government in Baghdad. Talks between Baghdad and the Kurdistan Regional Government (KRG) have culminated in a tentative agreement to reignite oil flows halted for two years.

The agreement mandates the Kurdistan region to deliver at least 230,000 barrels per day to the state oil marketer, SOMO, for export. However, frequent attacks by suspected Iran-backed militias, including recent strikes on fields operated by Norway's DNO, pose substantial challenges to oil production and security.

Despite no immediate claims of responsibility for the drone incursions, major players in the region's oil industry remain on edge. American and European oil firms, expecting the sustainment of existing contracts and the clearance of debts, are closely watching the unfolding financial details of the agreement.

(With inputs from agencies.)