Turkey and Iraq have taken a historic step in bilateral energy cooperation, with President Recep Tayyip Erdogan announcing plans to finalize a major oil and energy deal that could supply Turkey with up to 1 million barrels of oil per day from Iraq, according to statements following talks in Ankara.
The agreement, reached during a visit by Iraqi Prime Minister Ali al-Zaidi to the Turkish capital, represents the most significant energy partnership between the two neighbors in decades. Erdogan described the deal as a breakthrough that would transform economic ties and enhance regional energy security at a time when Middle East oil routes face severe disruption from the Iran-US war and Houthi attacks in the Red Sea.
Speaking at a joint press conference, Erdogan said the agreement would cover oil supplies, natural gas cooperation, and joint infrastructure projects including pipeline upgrades and electricity grid integration. The Turkish leader said technical teams would finalize terms within weeks.
The deal comes at a critical moment for global oil markets. Brent crude has surged past 00 per barrel amid the ongoing conflict over the Strait of Hormuz, where Iranian forces have repeatedly targeted commercial shipping. The Turkey-Iraq pipeline route offers an alternative corridor for Iraqi oil exports that bypasses the volatile Persian Gulf, potentially stabilizing supply lines.
Iraq, OPEC’s second-largest producer, has long sought to diversify its export routes beyond the Gulf. The pipeline running from Iraq’s Kirkuk fields to Turkey’s Ceyhan port on the Mediterranean has been plagued by political disputes and infrastructure damage but could see renewed investment under the partnership.
Al-Zaidi said Iraq was prepared to significantly ramp up production capacity to meet the terms of the agreement, which also includes Turkish investment in Iraq’s energy sector. Baghdad views the deal as a way to rebuild its economy after years of conflict and to reduce dependence on Iranian energy supplies.
The energy alliance also carries strategic implications. Turkey, a NATO member, has maintained complex relations with Iran throughout the current war, balancing its Western alliance with economic interests in the region. Deepening energy ties with Iraq strengthens Ankara’s hand and reduces its vulnerability to supply disruptions from any direction.
Analysts say the deal could also pressure Iran, which has used energy leverage over both Iraq and Turkey in the past. Iraq has relied on Iranian gas and electricity imports, and Turkey has been a transit route for Iranian trade. A solid Turkey-Iraq axis shifts the regional energy calculus.
However, significant challenges remain. The Kirkuk-Ceyhan pipeline has been offline for parts of 2025 and 2026 due to technical issues and political disputes between Baghdad and the Kurdish Regional Government, which controls the northern oil fields. The new deal will require Kurdish cooperation, as well as massive investment in infrastructure.
Erdogan said he would visit Baghdad in the coming weeks to sign the formal agreement, which he called “a new chapter in brotherhood and cooperation.” The two sides also discussed security coordination against Kurdish militant groups operating along their shared border.
For global energy markets already reeling from the Hormuz crisis, the Turkey-Iraq deal offers a rare piece of positive news. If implemented, it could ease supply fears and help stabilize prices that have threatened to tip the world economy into recession.
Author: Pulse Of Nations Wire Desk
