Turkey reached an agreement with Iraq to extend an expired oil pipeline deal by one year and increase flows through it, ensuring supply through an exports route that bypasses the Strait of Hormuz. The Kirkuk-Ceyhan pipeline remains a critical artery for Iraqi crude exports to global markets via Turkey's Mediterranean port of Ceyhan.

The extension provides certainty for both nations after the previous agreement lapsed. Iraq relies on the pipeline for a significant portion of its northern exports, while Turkey benefits from transit fees and its role as an energy hub. The deal also reduces dependence on the Strait of Hormuz, a strategic chokepoint vulnerable to geopolitical disruption.

Flow rates are expected to rise under the new terms, though specific volume targets were not disclosed. The one-year timeframe suggests both sides are negotiating a longer-term framework amid shifting regional energy dynamics and OPEC+ production policies.