Iraq approves three-month mechanism for crude oil exports starting September 1

Iraq’s cabinet on Tuesday approved a temporary framework for exporting crude oil through a network of specialized international and local companies, with contracts running for three months beginning September 1, 2026. The decision opens multiple export outlets for Iraqi crude, a move designed to reduce the country’s dependence on any single route in a region where supply disruptions are never more than one geopolitical flare-up away. The approval comes just weeks after Iraq signed a one-year pipeline agreement with Turkey on August 1, targeting a minimum export volume of 750,000 barrels per day to the Ceyhan terminal on Turkey’s Mediterranean coast. Why Baghdad is building redundancy into its oil exports Iraq is OPEC’s second-largest producer, and its economy runs on crude the way most countries run on tax revenue. When export routes face disruption, whether from maritime chokepoints like the Strait of Hormuz or from infrastructure bottlenecks on land, the fiscal consequences ripple through Baghdad’s budget almost immediately. The Turkey pipeline deal adds a critical physical dimension to this strategy. The Ceyhan terminal has long been a vital conduit for Iraqi crude reaching Euro...