Iraq is resuming oil exports from its semiautonomous Kurdish region through Turkey’s Ceyhan port after a halt of more than two years, officials said, reopening a route that has long sat at the center of disputes between Baghdad and the Kurdish authorities.

The restart is a major economic development for Iraq because oil remains the country’s dominant revenue source. It is also politically significant because it shows Baghdad and Irbil were able to reach a practical agreement even though their disagreements over revenue sharing and field management remain unresolved.

According to the packet, pumping is scheduled to begin at 6 a.m. Saturday, with an agreed quantity of 240,000 barrels per day. In practice, the amount actually exported will be somewhat lower, around 180,000 to 190,000 barrels, while about 50,000 barrels will be kept for local use in the Kurdish region. Those figures matter because they show the restart is real but not total: some oil will stay at home, and the arrangement has built-in limits.

The deal follows a tripartite agreement between Iraq’s federal Oil Ministry, the Kurdish region’s natural resources ministry and international oil companies operating in the region. That structure underlines how many parties must align for the exports to flow again. It also explains why previous efforts to reopen the line failed.

The shutdown began in early 2023 after the International Chamber of Commerce sided with Iraq in an arbitration case over the Kurdish regional government’s independent oil exports. That ruling did not end the underlying political dispute, but it did stop the flow through Turkey. The current restart therefore represents a workaround to a problem that has been litigated and negotiated for years.

The U.S. supported and closely monitored the agreement, according to the Iraqi official quoted in the report. U.S. Secretary of State Marco Rubio also welcomed the deal, saying it would bring tangible benefits for both Americans and Iraqis. That external backing suggests the restart has strategic importance beyond Iraq’s internal politics.

The export line to Ceyhan has been a flashpoint since 2014, when the Kurdish region began shipping oil independently through Turkey. Baghdad has maintained that such exports are illegal unless they go through the national oil company, while Kurdish authorities argued they were a response to budget transfers withheld by the central government. That long-standing dispute explains why a technical shipping decision carries such political weight.

For Iraq, the immediate upside is revenue. The broader upside is stabilization: every resumed shipment helps repair a relationship that has repeatedly broken down over control of resources. Yet the agreement is not the end of the story. The packet says the Iraq-Turkey export deal runs until July 2026, after which talks with Ankara will be needed for renewal.

That means the current restart is an important milestone, but not a final settlement. The export route is back in operation, revenue can start to flow, and the central government can claim progress. Still, the underlying battle over who controls Kurdish oil remains alive.

For now, though, the key fact is that after more than two years of suspension, barrels are once again moving toward Ceyhan. That is the practical result of a deal years in the making.