BAGHDAD — Faced with escalating disruptions in the Persian Gulf and recent attacks on tankers in its own territorial waters, Iraq is aggressively pursuing a two-pronged strategy to safeguard its crude oil exports. On Tuesday, March 17, 2026, Iraqi Oil Minister Hayan Abdel-Ghani confirmed that Baghdad is in active negotiations with Tehran while simultaneously fast-tracking the restoration of a vital northern export route to Turkey.
As the broader Middle East conflict continues to choke the strategic Strait of Hormuz, Iraq—one of the world’s most critical oil producers—is looking for ways to bypass the regional volatility that has put global energy supplies at risk.
The “Safe Passage” Diplomacy
Baghdad has opened a direct channel with Iran to secure “safe passage” for Iraqi oil tankers through the Strait of Hormuz. This move follows a series of maritime security incidents that have hampered Iraq’s ability to move crude from its southern terminals. While Iran currently enforces a naval blockade in parts of the strait, Iraq is banking on diplomatic ties to ensure its fleet is exempted from the crossfire.
Resurrecting the Kirkuk-Ceyhan Pipeline
In a significant shift toward infrastructure resilience, Minister Abdel-Ghani announced that the government is working to reopen the Kirkuk-Ceyhan pipeline. This 960-km artery, which connects Iraqi oil fields directly to Turkey’s Mediterranean coast, has been largely dormant since 2014 following attacks by Islamic State (ISIS) militants.
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Inspection Timeline: A critical 100-km section of the pipeline is currently undergoing a technical audit, which is expected to be completed within a week.
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Export Capacity: Initial flows are projected at 250,000 barrels per day (bpd), with the potential to scale up to 450,000 bpd.
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Strategic Bypass: Crucially, the restored route would allow Baghdad to export oil directly to Turkey without relying on the infrastructure controlled by the Kurdistan Regional Government (KRG).
Tensions with the Kurdistan Region
The move to restore the federal pipeline comes amidst a deepening legal and economic rift between Baghdad and the Kurdish authorities in Erbil.
Baghdad has accused the KRG of setting “arbitrary conditions” and obstructing earlier attempts to use the Kurdistan-based pipeline as a temporary workaround. In response, federal officials have warned of potential legal action if exports continue to be blocked. Conversely, Kurdish authorities have dismissed these claims, arguing that Baghdad has consistently failed to address the significant security and financial hurdles facing the region’s energy sector.
With the Kirkuk-Ceyhan route once handling nearly 0.5% of the global oil supply, its return to service could provide much-needed relief to international markets currently reeling from the energy shocks of the Iran-Israel war.
