U.S. Secretary of State’s Call with Iraqi Prime Minister Focuses on Oil Sector Interests
On March 5, 2025, it was reported that the U.S. Secretary of State, Marco Rubio, engaged in a critical discussion with Iraq’s Prime Minister, Mohamed Shia Al-Sudani. The conversation primarily revolved around safeguarding the interests of Western companies, particularly American firms, in Iraq’s oil sector.
During the call, Secretary Rubio emphasized the importance of maintaining these interests in the face of growing competition from Chinese and Russian companies, as well as Iranian influence. Specific requests included urging the Iraqi government not to open the oil pipeline through Turkey and reinforcing the investments of British Petroleum in the Kirkuk region.
Additionally, sources from within the U.S. State Department characterized the exchange as "very frank." In this dialogue, the Secretary clearly articulated the U.S. objective for Iraq to achieve complete independence from Iranian energy sources and to ensure the payment of dues owed to American companies operating within Iraq’s oil sector.
The Iraqi administration is reportedly in discussions with Turkey regarding the potential reopening of oil export pipelines through Turkish ports. Prime Minister Al-Sudani expressed alignment with Secretary Rubio on this issue, recognizing the reopening as crucial for increasing national income derived from oil sales.
Iraq’s economy is significantly reliant on oil revenues, which account for approximately 90% of the government’s income. This heavy reliance renders the economy susceptible to global fluctuations in oil prices, which have recently seen a decline, dropping to $70 per barrel.
As discussions progress, the implications for Iraq’s economic stability and foreign investment in the oil sector remain pivotal—especially against the backdrop of fluctuating global energy markets and ongoing geopolitical dynamics.
