Turkey to halt Iraq oil deal in 2026, pushes for new terms

(Reuters): The under-utilisation of an oil pipeline between Iraq and Turkey is unfortunate and Ankara wants a "new and vibrant phase" in the matter to benefit both parties and the region, a senior Turkish official told Reuters on Monday.

In a presidential decision published in the Official Gazette earlier on Monday, Ankara said the Turkey-Iraq Crude Oil Pipeline Agreement - agreed by Turkey's government in 1973 and put into effect in 1975 - and all subsequent protocols or memorandums will be halted from July 27, 2026.

The official said the pipeline had the potential to become a "highly active and strategic pipeline for the region", and added Turkey had invested heavily in its maintenance, while repeatedly noting its importance for regional projects like the Development Road - a planned trade route involving Turkey and Iraq.

"A new and vibrant phase for the Iraq-Turkey Pipeline will benefit both countries and the region as a whole," the person said.