The Kurdistan Regional Government (KRG) and the Iraqi government reached an agreement on oil exports following days of dispute between both governments over the issues.

Speaking to Channel8, Srwa Muhammad, a member of the Patriotic Union of Kurdistan (PUK) parliamentary bloc in the Iraqi parliament, stated that both governments have finalized a deal on the disputed issue.

Meanwhile, the Iraqi state-owned North Oil Company told Channel8 that they are prepared to proceed with oil exports.

KRG PM Announces Decision to Allow Oil Flow 

Prime Minister Masrour Barzani announced in a statement that the KRG "decided that, in the shortest possible time," oil will be allowed to flow through the Kurdistan Region’s pipelines.

Barzani stressed that “the extraordinary circumstances” and "responsibility that is our collective duty” were taken into consideration while deciding on the issue.

The agreement was announced amid Iraq's parliamentary session, where discussions involved several oil officials.

Barzani Aims to Lift Trade Restrictions, Thanks U.S. Support

He stated that discussions with the federal government will continue to swiftly lift import and trade restrictions in Kurdistan and to provide guarantees for oil and gas companies to resume production safely.

"I have thanks and appreciation for our American partners for their role and support in this process," he added.

Iraq's Oil Exports Drop Sharply Amid Conflict and Disputes with Kurdistan

Iraq's oil production and exports have declined sharply after the outbreak of the regional conflict and closure of the Strait of Hormuz earlier this month.

Baghdad requested the Kurdistan Region to allow for the transfer of up to 300,000 barrels of oil through its pipeline to Turkey's Ceyhan port as southern oil production has plunged by approximately 70%.

The KRG presented many conditions and stressed that Baghdad has imposed a “suffocating” economic embargo since January 2026 by restricting access to U.S. dollars for Kurdish traders under the pretext of implementing the ASYCUDA system.

The KRG also emphasized that "outlaw militias" have targeted Kurdistan’s oil facilities, halting production, while Baghdad failed to act.

Meanwhile, the Iraqi Ministry of Oil has accused the KRG of taking a "political" stance by refusing to resume exports.