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US Pressures Iraq to Restart Kurdistan Oil Exports

External Transfers Dominate 91% of Iraq's Central Bank Sales

The Trump Administration Pushes for Resumption of Iraqi Oil Exports

The administration of President Donald Trump is intensifying its efforts to reinstate oil exports from Iraq at the earliest opportunity. Recent insights from eight sources in Baghdad, Washington, and Erbil indicate that U.S. officials are applying substantial pressure on the Iraqi government to resume these exports, warning of potential sanctions should compliance not be forthcoming.

On February 17, 2025, Iraqi Oil Minister Hayyan Abdul Ghani announced that Baghdad plans to reinstate the export of 300,000 barrels of oil per day from the Kurdistan Region. Sources suggest that U.S. pressure has played a critical role in prompting this declaration from the Iraqi minister.

An official from Iraq reported that Washington is demanding the Iraqi government ensure crude oil from the Kurdistan Region is channeled back into global markets via Turkey. Two U.S. officials corroborated that the administration is urging Iraq to expedite oil exports from the Kurdistan Region.

A White House representative stated that the oil exports from the Kurdistan Regional Government are “important for regional security” and confirmed that the Kurdish authorities would be supported in their oil export ventures.

Upon assuming the presidency, Trump emphasized a policy of “extreme pressure” on Iran, aiming to reduce its oil exports to zero. This strategy could create significant oil shortages in the global market.

“The resumption of oil exports is essential to prevent surges in oil prices,” noted an official. Additionally, Ole Hansen, head of the Strategic Department of Goods at Danish Bank, asserted that “the resumption of oil exports in the Kurdistan Region is crucial to increasing oil availability in the global market,” particularly in light of deficits arising from several regions, including Kazakhstan and Russia.

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