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Iraqi Kurdistan Region’s Oil Output at Risk after Türkiye Halts Pipeline Exports

An oil field is seen in Kirkuk, Iraq October 18, 2017. (Reuters)
An oil field is seen in Kirkuk, Iraq October 18, 2017. (Reuters)
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Iraqi Kurdistan Region’s Oil Output at Risk after Türkiye Halts Pipeline Exports

An oil field is seen in Kirkuk, Iraq October 18, 2017. (Reuters)
An oil field is seen in Kirkuk, Iraq October 18, 2017. (Reuters)

Oil production in Iraq's semi-autonomous Kurdistan region (KRI) is at risk after a halt in northern exports has forced firms operating there to cease output or divert crude to storage, where capacity is limited.

Iraq was forced to halt around 450,000 barrels per day (bpd) of crude exports, or half a percent of global oil supply, from the KRI on Saturday through an export pipeline that runs from its northern Kirkuk oil fields to the Turkish port of Ceyhan.

Oil firms in the region have been left in limbo as the pipeline stoppage is set to continue until Ankara, Baghdad and the KRG find a settlement to resume exports.

Türkiye stopped pumping Iraqi crude from the pipeline after Iraq won an arbitration case in which it said Türkiye had violated a joint agreement by allowing the Kurdistan Regional Government (KRG) to export oil to Ceyhan without Baghdad's consent.

The news supported crude prices, with Brent rising over $3 per barrel on Monday.

Canada-based Forza Petroleum, formerly Oryx Petroleum Corporation, said on Monday it was shutting in production from the 14,500 bpd Hawler license in the KRI as storage was nearing full capacity.

Dallas-based HKN Energy, which operates the Sarsang block, said it would shut in operations "within a week if no resolution is reached" as its storage facilities approach capacity.

The block produced 43,038 bpd in the fourth quarter of last year.

HKN wrote to US representatives last year warning that a cessation of exports through the pipeline would trigger a collapse of the KRI economy.

Gulf Keystone Petroleum, which operates the 55,000 bpd Shaikan field in the KRI, said in a statement on Monday that its "facilities have storage capacity that allow continued production at a curtailed rate over the coming days, after which the company will suspend production".

DNO and Genel Energy said they were storing oil in tanks, which can accommodate several days of production.

The two firms hold stakes in the Tawke and Peshkabir fields, which produced 107,000 bpd of oil last year.

Genel also holds stakes in the Taq Taq and Sarta fields, which produced a respective 4,500 bpd and 4,710 bpd last year, according to the company's annual results.

Production at the Khurmala oil field run by Kurdish group Kar was unaffected at around 135,000 bpd and heading into tank, a source familiar with the field operations told Reuters.

Shamaran Petroleum said in a statement: "The company will remain in close contact with the other oil producers in the Kurdistan Region and with relevant government officials, and will continue to monitor this situation closely."

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Business

Fitch Affirms Israel's 'A' Rating with Negative Outlook

Smoke rises following a missile attack from Iran on Tel Aviv (Reuters)
Smoke rises following a missile attack from Iran on Tel Aviv (Reuters)
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Fitch Affirms Israel's 'A' Rating with Negative Outlook

Smoke rises following a missile attack from Iran on Tel Aviv (Reuters)
Smoke rises following a missile attack from Iran on Tel Aviv (Reuters)

Global ratings agency Fitch reaffirmed Israel's long-term foreign-currency rating at "A" with a negative outlook on Friday, adding that rising public debt levels and ongoing war-related risks could weaken the country's ⁠fiscal trajectory.

Fitch forecast ⁠military expenditure will remain high in 2026, well above pre-war levels, as Israel's involvement in Lebanon intensifies ⁠and operations continue.

It also expects Israel's central government cash budget deficit to widen this year before narrowing in 2027 as military spending declines.

"Israel's recent and ongoing military operations have somewhat diminished geopolitical risks ⁠to ⁠the ratings and demonstrated a highly effective defensive capability", the ratings agency said, although it warned the duration and scope of the current conflict remains uncertain.

Business

SoftBank Secures $40 Billion Loan to Boost OpenAI Investments

FILE PHOTO: The logo of SoftBank is displayed at a company shop in Tokyo, Japan January 28, 2025. REUTERS/Issei Kato/File Photo
FILE PHOTO: The logo of SoftBank is displayed at a company shop in Tokyo, Japan January 28, 2025. REUTERS/Issei Kato/File Photo
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SoftBank Secures $40 Billion Loan to Boost OpenAI Investments

FILE PHOTO: The logo of SoftBank is displayed at a company shop in Tokyo, Japan January 28, 2025. REUTERS/Issei Kato/File Photo
FILE PHOTO: The logo of SoftBank is displayed at a company shop in Tokyo, Japan January 28, 2025. REUTERS/Issei Kato/File Photo

Softbank Group said on Friday it has secured a $40 billion bridge loan to bolster investments in ChatGPT-maker OpenAI and for general corporate purposes, marking another significant step in its artificial intelligence strategy.

The Japanese investment conglomerate, led by founder Masayoshi Son, continues to strengthen ties with OpenAI as global tech firms race to gain an edge in the increasingly competitive ⁠generative AI space.

The Japanese investor has previously agreed to invest $30 billion in OpenAI through its Vision Fund 2. The bridge loan is unsecured, the company said.

The loan, which matures in March 2027, was arranged with lenders including JPMorgan Chase, Goldman Sachs, Mizuho Bank, Sumitomo Mitsui Banking Corp and MUFG Bank.

OpenAI, backed by Microsoft, has emerged as a leading player following the ⁠widespread adoption of ChatGPT, prompting a surge in investment across the sector.

The loan underscores Son's increasingly aggressive bet on AI following years when SoftBank swung between outsized gains and heavy Vision Fund losses.

SoftBank ⁠and OpenAI were among the companies behind the Stargate Project last year, which said it aimed to invest up to $500 billion over ⁠four years to build AI infrastructure in the United States.

Son and then President-elect Donald Trump announced in December 2024 ⁠that SoftBank planned to invest $100 billion in AI and related infrastructure in the US over four years.

Giant Alliance

In a related development, Japanese industrial conglomerate Toshiba said on Friday it will start negotiations with Mitsubishi Electric and chipmaker Rohm to merge their power semiconductor businesses, as international competition over the sector heats up.

The move comes as Japan has been pushing for a greater presence in the global semiconductor market.

If realized, the alliance would create the world's second-largest power chip group, according to local media.

Billed as able to drastically reduce power loss, power semiconductors are seen as pivotal to sectors ranging from railway to automotive and renewable energy.

Toshiba Electronic Devices & Storage Corporation (TDSC), a subsidiary of Toshiba, signed a memorandum of understanding to begin discussions with Mitsubishi and Rohm.

“As the global competition over the semiconductor industry keeps intensifying, TDSC and Rohm have long explored the possibility of coordinating in the power semiconductor sector,” Toshiba said.

With Mitsubishi Electric now on board, too, a merger would make “our business scale and technological infrastructure competitive in the global market,” Toshiba said.

The agreement was also signed by Japan Industrial Partners and TBJ Holdings.

Japan currently holds less than 10% of the global chip market, but the government is investing heavily in new factories in a bid to change that.

Earlier this month, Prime Minister Sanae Takaichi's administration set a new sales target for domestically produced microchips, aiming for an eightfold increase by 2040 compared with 2020 levels.

The 2040 target of 40 trillion yen ($250 billion) far exceeds sales of around five trillion yen in 2020, according to figures from the ministry of economy, trade and industry.

Business

WTO Reform Talks Face US-Indian Obstacles

Delegates applaud during the opening of the World Trade Organisation (WTO) 14th ministerial meeting in Yaounde, Cameroon, on 26th March, 2026.  (WTO/Handout via Reuters)
Delegates applaud during the opening of the World Trade Organisation (WTO) 14th ministerial meeting in Yaounde, Cameroon, on 26th March, 2026.  (WTO/Handout via Reuters)
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WTO Reform Talks Face US-Indian Obstacles

Delegates applaud during the opening of the World Trade Organisation (WTO) 14th ministerial meeting in Yaounde, Cameroon, on 26th March, 2026.  (WTO/Handout via Reuters)
Delegates applaud during the opening of the World Trade Organisation (WTO) 14th ministerial meeting in Yaounde, Cameroon, on 26th March, 2026.  (WTO/Handout via Reuters)

Large differences remain between most countries and the US and India as trade ministers meet to discuss reforms at the World Trade Organization, two diplomats told Reuters on Friday.

The ministers are meeting in Yaounde, Cameroon, as the organization faces a critical test to its future amid a year of tariff-fueled trade turmoil and major disruption to shipping, energy prices and supply chains due to the Middle East conflict.

“There is a real commitment among ministers to reach an agreement on reforms, but there is a big elephant in the room blocking: India and the US,” a senior diplomat told Reuters.

Another diplomat from an African country said India so far has not shown signs of a change in position. Some flexibility, however, might be possible, the person added. The diplomats declined to be named due to the sensitivity of the negotiations.

While the US and India acknowledge the need to reform the global trading system, they have resisted proposals of a substantive workplan on reforms.

“Unfortunately on reform I don't see much room for maneuver between ⁠the US and India's positions,” said the senior diplomat.

India has also opposed an agreement to aid investment into developing countries and the US desire to permanently extend an e-commerce moratorium on customs duties on electronic transmissions like digital downloads, which expires this month.

“The US, China, EU and UK positions are reasonable, but there is one party that we need to see compromise from to make progress - India,” said Chris Southworth, the Secretary General of the UK International Chamber of Commerce.

“I think frustration among members will start to spillover here in Yaounde if we see no progress,” he added.

India’s Position

India's Minister of Commerce and Industry Piyush Goyal has cast doubt on US efforts to extend the e-commerce moratorium, saying it warranted a “careful reconsideration.” India is concerned about a loss of tariff revenue.

US Trade Representative Jamieson Greer said on Thursday Washington ⁠was not interested in a temporary extension to the ban, only a permanent one.

Goyal has also challenged moves by the EU, US, Canada and others for a subset of members to take decisions plurilaterally, saying any outcome should be agreed by consensus.

That has cast a shadow over whether an Investment Facilitation for Development Agreement to encourage foreign direct investment in developing and least-developed countries can be incorporated into the WTO rule book in Yaounde.

Türkiye on Thursday lifted its opposition to it.

Goyal's position showed India wants to protect the WTO's core architecture, said Ajay Srivastava, founder of think ⁠tank Global Trade Research Initiative and a former Indian negotiator.

“Together, these risk turning the WTO from a rules-based body into one driven by power and selective coalitions,” he said.

There is also deadlock over one of New Delhi's key priorities: a permanent solution on public stock holding to allow developing countries to give subsidies to rice and wheat farmers through a price support mechanism.

Big agricultural exporters ⁠like the US, EU and Australia fear it would let countries like India build large stocks of foodstuffs and dispose surpluses, potentially distorting trade.

Randa Sengupta, a senior researcher at think tank, the Third World Network, said PSH was important for supporting farmers and enabling food security for poorer communities in India.

‘Constructive’ Talks

Still, a concrete reform workplan was within ⁠reach, Norway's Foreign Minister Espen Barth Eide told Reuters.

“People are beginning to engage in the real questions,” he said, pointing to talks on the WTO's Most Favored Nation principle to treat states equally, while allowing exceptions to national security.

Similarly, Britain's Business Secretary Peter Kyle said a text on reforms was emerging and that constructive talks were taking place to ensure broad agreement.

Caption: Delegates applaud during the opening of the World Trade Organisation (WTO) 14th ministerial meeting in Yaounde, Cameroon, on 26th March, 2026. (WTO/Handout via Reuters)