Iraq will stop the transportation of crude from its northern Kirkuk oilfield to Iran to comply with US sanctions on its neighbour which come into place in November.
Iraq currently exports approximately 30,000 barrels per day (bpd) from Kirkuk to Iran via trucks for use in its refineries, with Iran delivering the same amount of oil to Iraq’s southern ports.
New Iraq Prime Minister Abdul Mahdi revealed on Thursday that Iraq would prioritise its own interests and independence when it comes to helping the U.S. enforce the sanctions on Iran however Washington has said there will be consequences for countries who don't respect the sanctions.
In order to compensate for the loss of export to Iran, Iraq may seek to resume exports via Turkey. Previous PM Haider al-Abadi’s outgoing federal government had reached a deal last month with the Kurdistan Regional Government (KRG) to resume exports of crude to Turkey’s Ceyhan port via the KRG with the deal now subject to review and approval from Abdul Mahdi and new Minister of Oil Thamer Ghadhban.