The Trump administration is ramping up efforts to have Iraq recommence Kurdish crude oil exports as part of a strategy to eradicate Iranian crude shipments. This U.S. 'maximum pressure' approach aims to weaken Tehran's economic role in Iraq. The central Iraqi government is facing challenges in meeting U.S. demands, including internal disputes with the Kurdish region over revenue control and necessary infrastructure maintenance. Moreover, international oil firms are hesitant to engage without payment guarantees, contributing to a precarious situation that could stall prospects for oil export resumption.
The U.S. is pressuring Iraq to restart Kurdish oil exports, aiming to cut Iranian crude exports to zero as part of its maximum pressure strategy against Iran.
Tensions between the Iraqi central government and the Kurdish region hinder the resumption of oil exports, with issues related to payments and revenue control complicating negotiations.
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