According to reports from Al Jazeera, the Kurdistan Regional Government (KRG) may soon reach an agreement with Iran to export 250,000 a day of oil to Tehran. However, Iranian officials have announced the deal will definitely not go through if Baghdad does not approve the agreement.
This deal has been a 2-year process which has been getting closer to approval by both parties, yet, details of the construction of the pipeline, are yet to be finalised.
Iran’s previous sanctions mean this deal would help a speed up Iran’s economic recovery and solidify their presence in Iraqi Kurdistan, yet, it may also mean Iran will interfere with American and Sunni presence in Iraq. However, Iran’s fiscal health is dependent on this deal and will no doubt suffer if it does not see it through.