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Iraq, Oil Firms Trade Blame Over Shut Türkiye Pipeline 

A general view of the Kirkuk-Ceyhan pipeline linking Iraq and Türkiye at Türkiye's Mediterranean port of Ceyhan. (Reuters)
A general view of the Kirkuk-Ceyhan pipeline linking Iraq and Türkiye at Türkiye's Mediterranean port of Ceyhan. (Reuters)
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Iraq, Oil Firms Trade Blame Over Shut Türkiye Pipeline 

A general view of the Kirkuk-Ceyhan pipeline linking Iraq and Türkiye at Türkiye's Mediterranean port of Ceyhan. (Reuters)
A general view of the Kirkuk-Ceyhan pipeline linking Iraq and Türkiye at Türkiye's Mediterranean port of Ceyhan. (Reuters)

Foreign oil firms operating in Iraq's Kurdistan region are partly to blame for the delay in resuming crude exports after failing to submit contracts for revision, Iraq's oil ministry said.

The Iraq-Türkiye oil pipeline (ITP) which once handled about 0.5% of global oil supply has been halted, stuck in legal and financial limbo, since March 2023.

The flows were halted after the Paris-based International Chamber of Commerce in a longstanding arbitration case ruled Ankara had violated provisions of a 1973 treaty by facilitating such exports without the consent of the Iraqi federal government.

Iraq's oil ministry in a statement published late on Sunday noted that foreign companies, alongside the Iraqi Kurdish authorities, have still not submitted contracts for revision to the ministry.

The government is seeking to revise such deals after a court ruled ones signed with the Kurdistan Regional Government (KRG) were invalid, it said in response to a statement on Saturday by the Association of the Petroleum Industry of Kurdistan (APIKUR).

Iraq's federal court in 2022 deemed an oil and gas law regulating the Kurdistan region's oil and gas industry as unconstitutional.

Iraq owes Türkiye minimum payments as long as the pipeline is technically operational - estimated by consultancy Wood Mackenzie at around $25 million per month. APIKUR has cited a similar figure saying it understands Iraq owes $800,000 in daily penalties.

APIKUR said the government of Iraq had not "taken the required actions" to reopen ITP, adding that "there has been no real progress" to reopen ITP despite meetings in Baghdad in January between representatives of the Iraqi government, the KRG and international oil companies.

APIKUR said its member companies' "current commercial terms and economic model must be maintained" and called for payment assurances for past and future oil exports.

Iraq's Prime Minister Mohammed Shia al-Sudani is due to meet US President Joe Biden in Washington on April 15 to discuss the future of the US-led coalition in Iraq, as well as Iraqi financial reforms and a US push to wean Iraq - a rare ally of both Washington and Tehran - off Iranian power and gas.

APIKUR said it had conveyed to members of Biden's administration and Congress that the White House should not proceed with the planned visit unless flows through ITP resume, international oil firms get payment assurances and the Iraqi government fully implements the Iraqi federal budget for the KRG.

Responding to a Reuters request for comment, a US State Department spokesperson said the US government "encourages all parties to reach an agreement to resume the flow of oil through the Iraq- Türkiye pipeline as soon as possible."

"Restarting oil exports through the Iraq-Türkiye pipeline would be beneficial for all parties," the spokesperson said.

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Business

Oil Surges, Stocks Fall as Trump Says to Blockade Strait of Hormuz

FILE PHOTO: A map showing the Strait of Hormuz and a 3D printed oil pipeline are seen in this illustration taken March 23, 2026. REUTERS/Dado Ruvic/Illustration//File Photo
FILE PHOTO: A map showing the Strait of Hormuz and a 3D printed oil pipeline are seen in this illustration taken March 23, 2026. REUTERS/Dado Ruvic/Illustration//File Photo
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Oil Surges, Stocks Fall as Trump Says to Blockade Strait of Hormuz

FILE PHOTO: A map showing the Strait of Hormuz and a 3D printed oil pipeline are seen in this illustration taken March 23, 2026. REUTERS/Dado Ruvic/Illustration//File Photo
FILE PHOTO: A map showing the Strait of Hormuz and a 3D printed oil pipeline are seen in this illustration taken March 23, 2026. REUTERS/Dado Ruvic/Illustration//File Photo

Oil prices surged and stocks sank Monday after US-Iran peace talks fell apart and Donald Trump announced a blockade of the strategic Strait of Hormuz, adding to fears of energy supplies from the Middle East.

Negotiations in Islamabad at the weekend fell apart with the US delegation -- led by Vice President JD Vance -- blaming Iran's refusal to give up its nuclear program and Tehran hitting out at "maximalism, shifting goalposts, and blockade".

The news dealt a blow to hopes for an end to the six-week conflict, which has sent crude prices soaring, pushing inflation up and sending shivers through the global economy, said AFP.

Oil prices -- which tumbled last week after the United States and Iran agreed to a ceasefire -- jumped around eight percent Monday, with both contracts topping $100 a barrel.

Equities fell across Asia, with Tokyo, Hong Kong and Seoul off at least one percent, while Shanghai, Sydney, Singapore, Taipei and Jakarta were also down.

In a lengthy social media post, US President Donald Trump said his goal was to clear the strait of mines and reopen it to all shipping.

But he said that Iran must not be allowed to profit from controlling the waterway -- through which a fifth of global oil and gas usually passes.

"Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz," Trump wrote on Truth Social.

"Any Iranian who fires at us, or at peaceful vessels, will be BLOWN TO HELL!"

He said the blockade would only apply to vessels travelling to or from Iranian ports.

The US military said Sunday it will blockade all Iranian Gulf ports on Monday at 1400 GMT, effectively seizing control of maritime traffic.

Iran's Revolutionary Guards said its security forces had full control over the strait and warned enemies would be trapped in a "deadly vortex" in case of any "wrong move".

Iran's navy chief Shahram Irani called Trump's threat "ridiculous and funny", according to state TV.

After the talks -- the highest-level meeting between the two sides since the 1979 Iranian revolution -- Vance said Washington had made Tehran its "final and best offer," adding: "We'll see if the Iranians accept it."

Iran's Foreign Minister Abbas Araghchi said the rivals had been "inches away" from a deal, writing on X that "Iran engaged with US in good faith to end war".

But he added "we encountered maximalism, shifting goalposts, and blockade".

Nicole Grajewski, an assistant professor at the Center for International Research at Sciences Po in Paris, warned that a US blockade was "not a minor coercive signal" but would rather be considered an effective resumption of the war.

Fawad Razaqzada, a market analyst at Forex.com, said: "The fundamental issue remains trust - or rather, the lack of it - between two long-standing adversaries who still appear some distance from common ground."

Investors are also keeping an eye on attempts to resolve the conflict between Israel and Hezbollah, as Lebanese Prime Minister Nawaf Salam said he was pushing to ensure the withdrawal of Israeli forces.

"We will continue to work to stop this war, to ensure the Israeli withdrawal from all our lands, the return of all the prisoners, to rebuild our destroyed villages and towns, and the safe return of the displaced," Salam said.

The prospect of the Middle East crisis continuing for the foreseeable future ramped up inflation fears and weighed on gold amid expectations interest rates would be kept elevated.

Data Friday highlighted the impact of the conflict on prices, with the US consumer price index spiking at 3.3 percent in March, its highest since May last year.

Business

Saudi Investment Minister Inaugurates Lenovo Regional HQ in Riyadh

Al-Saif said Lenovo’s decision to establish its regional headquarters in the Kingdom reflects the strength of the Saudi economy. SPA
Al-Saif said Lenovo’s decision to establish its regional headquarters in the Kingdom reflects the strength of the Saudi economy. SPA
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Saudi Investment Minister Inaugurates Lenovo Regional HQ in Riyadh

Al-Saif said Lenovo’s decision to establish its regional headquarters in the Kingdom reflects the strength of the Saudi economy. SPA
Al-Saif said Lenovo’s decision to establish its regional headquarters in the Kingdom reflects the strength of the Saudi economy. SPA

Saudi Minister of Investment Fahad Al-Saif inaugurated on Sunday Lenovo’s regional headquarters for the Middle East, Türkiye, and Africa in Riyadh, marking a significant step in the Kingdom’s efforts to strengthen its position as a regional hub for global companies in line with the objectives of Saudi Vision 2030.

Al-Saif stated that Lenovo’s decision to establish its regional headquarters in the Kingdom reflects the strength of the Saudi economy, the attractiveness of its investment environment, and the pace of its economic transformation.

He noted that the move highlights the success of the regional headquarters program in attracting leading global companies and enabling them to manage and expand their operations from Saudi Arabia.

He added that Lenovo’s investments in Saudi Arabia include developing research and development programs, enhancing local skills, and establishing a manufacturing platform with an annual production capacity of approximately eight million units, contributing to the creation of high-quality jobs and supporting the localization of technology and industry.

Al-Saif emphasized that such partnerships with global companies strengthen the Kingdom’s position in global technology value chains, support the growth of national industry, accelerate knowledge transfer and human capital development, and provide a platform for international firms to expand and innovate in one of the region’s fastest-growing markets.

Business

Rapid Recovery of Oil Facilities Reinforces Saudi Arabia’s Reliability as a Global Energy Supplier

Two Aramco employees at one of the company's facilities (Aramco)
Two Aramco employees at one of the company's facilities (Aramco)
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Rapid Recovery of Oil Facilities Reinforces Saudi Arabia’s Reliability as a Global Energy Supplier

Two Aramco employees at one of the company's facilities (Aramco)
Two Aramco employees at one of the company's facilities (Aramco)

Saudi Arabia demonstrated exceptional readiness and a rapid response in containing the fallout from the recent attacks on some of its oil facilities, restoring operations in record time. It swiftly repaired damage and brought production systems back online with high efficiency.

The Kingdom’s success in restoring full crude throughput via the East–West pipeline, returning the Manifa facility to full operating capacity, and countering attempts to disrupt critical infrastructure underscores its technical and professional capabilities.

This was achieved through a highly professional emergency response system that thwarted attempts to cut off a key artery of global energy supply.

Saudi Arabia’s Ministry of Energy announced on Sunday the full restoration of crude throughput via the East–West pipeline to approximately 7 million barrels per day, along with the return of the Manifa facility to its full operating capacity of around 300,000 barrels per day. This came just days after assessing damage from the attacks. Efforts are still ongoing to restore the full production capacity of the Khurais field, estimated at 300,000 barrels per day.

The East–West pipeline (Petroline) stretches 1,200 kilometers from Abqaiq in the east to Yanbu on the Red Sea coast and serves as a primary alternative route for crude exports in light of the closure of the Strait of Hormuz.

The Kingdom activated an emergency plan to increase exports via this pipeline to the Red Sea amid the effective closure of the strait due to ongoing regional conflict, which has constrained a major export route for Gulf producers. As a result, oil tankers were rerouted to Yanbu port to load shipments, providing a critical supply artery for global markets.

Yanbu Commercial Port, one of Saudi Arabia's important seaports in the current period (Ports)

Operational Flexibility and a Global Safety Valve

The operational flexibility demonstrated by Saudi Aramco and the broader energy system reflects a qualitative shift, underscoring the Kingdom’s ability to protect its assets through advanced engineering and technical infrastructure capable of rapid recovery.

This response extended beyond the technical dimension, reaffirming Saudi Arabia’s firm commitment to ensuring the stability of oil supplies and strengthening its position as a reliable supplier capable of managing crises with high efficiency.

The swift restoration of operations also sends a reassuring signal to global markets that Saudi energy security remains a stabilizing force for the international economy, regardless of the severity of threats. It reinforces the Kingdom’s leadership role in supporting global stability and the reliability of its supplies under the most challenging geopolitical conditions.

In remarks to Asharq Al-Awsat, energy expert and former adviser to the Saudi oil minister, Dr. Mohammad Al-Sabban, said the Kingdom has, for decades, particularly since the 1970s, proven itself a dependable source of global oil supplies under all circumstances.

He noted that Saudi Aramco’s response reflects a high level of efficiency and preparedness, successfully addressing the impact of attacks that disrupted around 300,000 barrels per day in production, in addition to damage affecting the East–West pipeline.

He added that the company was able within a short period to restore affected refined products, repair faults, and resume operations efficiently, highlighting the Kingdom’s strong resilience and Aramco’s accumulated expertise in crisis management and navigating global market fluctuations.

Al-Sabban said restoring throughput to around 7 million barrels per day via the East–West pipeline, as announced by the Ministry of Energy, sends a clear reassurance to global markets regarding the stability of Saudi supplies.

He stressed that these developments confirm Saudi Arabia’s ability to remain a reliable energy supplier, particularly amid ongoing geopolitical challenges in the Gulf region, including tensions surrounding the Strait of Hormuz.

The East–West pipeline, built in the last century, has become a strategic and vital corridor for Saudi oil exports to global markets.