Iraq and Türkiye Sign Deal to Boost Oil Exports

Iraq and Türkiye signed a one-year interim agreement on August 1, 2026, to maintain and expand crude oil exports through the Iraq-Türkiye Pipeline (ITP). The deal, signed by Turkish state pipeline operator BOTAS and Iraqi state companies SOMO and NOC, guarantees a daily capacity of 750,000 barrels. This marks a significant increase from current flow levels, which are estimated between 170,000 and 200,000 barrels per day.

Ali al-Zaidi, the Prime Minister of Iraq, visited Ankara to finalize the arrangement following the July 27 expiration of a 1973 framework. The agreement serves as a transit measure while both nations negotiate a broader long-term framework covering oil, electricity, and water resources. Iraq is pursuing the deal to diversify its export routes and reduce reliance on the Strait of Hormuz, which has faced shipping disruptions since the start of the U.S.-Iran war in February.

Türkiye aims to eventually utilize the pipeline's full 1.5 million barrel daily capacity and potentially extend it to southern Iraqi oil fields. The arrangement ensures a steady flow of crude from Kirkuk to the Mediterranean port of Ceyhan for global shipment.