How an oil pipeline battle shows the US gaining sway in Iraq

Economic Times
Economic Times
1w ago • 9 views
The US pressured Iraq to reopen a key oil pipeline after Iranian drone attacks on American oilfields. This marks a shift in influence from Tehran to Washington.
How an oil pipeline battle shows the US gaining sway in Iraq
A What happened
In mid-July, Iranian-backed drones attacked American oilfields in Iraq's Kurdistan region, targeting operations run by companies like HKN Energy and Hunt Oil. The US responded with a pressure campaign, threatening sanctions if Iraq did not reopen a vital oil export pipeline to Turkey. After two months of negotiations, Iraq agreed to restart the pipeline, signaling a shift in influence from Iran to the US. This incident highlights the intertwining of US diplomatic efforts and business interests in the region, particularly in energy. The future of this agreement remains uncertain, as it is temporary and subject to review, amidst ongoing tensions between Iraq and Iran.

Key insights

  • 1

    Iranian Drone Attacks: Drones targeted US oilfields, disrupting nearly half of Kurdistan's production.

  • 2

    US Diplomatic Pressure: The US threatened sanctions to ensure the pipeline's reopening.

  • 3

    Shift in Influence: The agreement indicates a move away from Iranian control towards US influence.

Takeaways

The reopening of the oil pipeline reflects a significant shift in Iraq's geopolitical landscape, favoring US interests amid ongoing tensions with Iran. The durability of this agreement remains to be seen.

Topics

Business & Markets Economy World & Politics International Affairs Climate & Environment Energy