Iraq’s Kurdistan Regional Government (KRG) has suspended oil exports to neighboring Iran, the KRG’s Ministry of Finance and Economy said in a statement. According to the statement, the KRG ordered border crossings not to allow the passage of oil tankers into Iran.
While the KRG provided no official reason of the decision, but it’s likely linked to the US sanctions against Iran. The KRG, especially its separatist intentions, is being actively supported from the White House. So, the regional administration may be seeking to show its importance to the US foreign policy in the Middle East once again.
This approach will not impact the relations between Baghdad and Tehran, which have deep economic, political and security ties. However, if the KRG decision is really linked to the US sanctions, it will likely face a punishment from the Federal Government.
Currently, the trade between Iraq and Iran stands at $12 billion. Officials from both states say the two sides will work to increase the figure to $20 billion annually.