Türkiye to End Iraq Pipeline Pact in 2026

Türkiye has announced it will formally terminate its longstanding crude oil pipeline agreement with Iraq, setting an end date of July 27, 2026, for the legal framework governing the Kirkuk-Ceyhan pipeline. This move follows a $1.4–$1.5 billion arbitration ruling against Türkiye for unauthorized Kurdish oil exports and comes as the pipeline remains suspended since 2023. Despite legal and political tensions, Türkiye has proposed a new, broader energy partnership to Iraq, encompassing oil, gas, petrochemicals, and electricity. Both sides are currently reviewing the draft terms, with Ankara emphasizing the pipeline's strategic importance and the potential for expanded regional cooperation, such as the Development Road project. Ongoing negotiations aim to modernize and revitalize energy collaboration between the countries. Improved Baghdad-Kurdistan Regional Government relations are seen by analysts as a potential key for resuming exports and broader energy ties.