Iraq and the Kurdistan Regional Government have reached an agreement to resume oil exports through a pipeline in the semi-autonomous region, ending a months-long shutdown. The deal marks a significant breakthrough for OPEC's second-largest producer after production was disrupted by the closure of the Strait of Hormuz. The pipeline had been offline since March when Baghdad cut off payments to the Kurdish regional government.

This agreement comes at a critical time for global energy markets as supply disruptions in the Middle East have tightened crude availability. The pipeline through Turkey has historically been a key export route, capable of transporting up to 400,000 barrels per day from northern Iraqi fields. The resumption of flows will help stabilize Iraq's oil revenues, which account for the vast majority of the federal budget.

The breakthrough demonstrates how geopolitical tensions can force pragmatic economic solutions. Both Baghdad and Erbil have faced mounting pressure to find common ground as global oil prices have remained volatile. The deal also signals potential easing of broader regional tensions that have complicated energy infrastructure projects across the Middle East.