Iraq has also reached an agreement with the Kurdistan region to restart oil exports through a pipeline that runs from the semi-autonomous region to Turkey’s Mediterranean port of Ceyhan. The move marks a step towards restoring disrupted export volumes and stabilising shipments to international markets.
The rerouting of crude supplies is expected to ease some concerns around global oil availability, particularly amid ongoing geopolitical tensions affecting traditional supply routes. However, the impact is likely to be limited, as the alternative export channels may not fully compensate for broader supply risks.At the same time, the United States has stepped up efforts to push for the reopening of the Strait of Hormuz, underlining its continued importance to global energy security. The dual developments — Iraq’s diversification of export routes and US pressure to restore flows through Hormuz — have contributed to a softer trend in oil prices.
Market participants remain cautious, weighing the partial resumption of Iraqi exports against persistent uncertainties in global supply chains.
The latest agreements by SOMO signal Iraq’s intent to maintain export continuity while navigating logistical and geopolitical challenges in the region.
