Iraq's Government Sues Kurdish Region Over US Oil Deals
Iraq's main government is taking legal action against the Kurdish region in northern Iraq. The Kurds made big oil and gas deals with American companies without asking Baghdad first.
The Kurdish leader signed two energy contracts worth $110 billion with US firms HKN Energy and WesternZagros during a recent trip to Washington. These deals involve developing gas fields near the city of Sulaimaniya.
Baghdad says these agreements break Iraq's constitution because the Kurds didn't include the federal government. They want to cancel the deals. The Kurdish government disagrees and says the contracts are legal.
This fight makes it harder to restart oil exports through a pipeline from Kurdish Iraq to Turkey. The pipeline has been shut down since March 2023 after an international court ruled that Turkey broke treaty rules.
The US wants these oil exports to restart because it could help replace Iranian oil. President Trump is trying to stop all Iranian oil sales as part of his tough policy against Iran.
Iraq is stuck in the middle because it's friendly with both America and Iran. The country doesn't want to get caught up in this dispute.
An Iraqi energy expert said the timing of these gas deals is important because Iran is getting weaker and Washington wants Iraq to rely less on Iranian gas.