Iraq and Turkey now have less than two months to reach a new agreement on their major oil pipeline as Iraq faces falling oil exports linked to the near-closure of the Strait of Hormuz.
The pipeline, which stretches about 970 kilometers from Kirkuk in northern Iraq to the Turkish port of Ceyhan, has been used for decades to transport Iraqi crude oil to European markets.
The current agreement governing the pipeline is set to expire on July 27, increasing pressure on both sides to finalize a new deal quickly.
Analysts say the situation is becoming more urgent because Iraq is already dealing with a sharp drop in oil exports, making the pipeline even more important for maintaining energy flows and export revenues.
