Pipeline Pause: Turkey-Iraq Agreement Update

The 1975 pipeline agreement between Turkey and Iraq is nearing expiration, as reported in the country's Official Gazette. The contract will cease by July 2026, pausing a long-standing oil transport arrangement.

This decision comes amidst ongoing efforts by both nations to reactivate oil flows through a key pipeline to Turkey's Ceyhan port, halted in March 2023. The stoppage followed a ruling by the International Chamber of Commerce (ICC) which mandated Turkey to compensate Iraq $1.5 billion over unauthorized export claims.

Despite Turkey's readiness to resume operations, negotiations hit a roadblock in March regarding payment and contractual issues. The agreement's expiration underscores these ongoing diplomatic challenges.

(With inputs from agencies.)