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September 24, 2025
Is Iraq Looking To Open Another Backdoor For Iran To Export Its Oil?
Iraq has long been the key instrument through which Iran has been able to generate economy-supporting revenue from oil exports around the world, despite intense sanctions against it doing so. Last week, the general manager of Iraq’s State Organization for Marketing of Oil (SOMO), Ali Nazar al-Satari, said that the monopoly state oil marketer is in talks with Oman’s OQ Trading to build an oil pipeline between the two countries. This potentially opens another extremely valuable mechanism by which Iran can circumvent sanctions, so...
**Iraq in Talks with Oman on Oil Pipeline: A Potential Sanctions Loophole for Iran?**
Baghdad, Iraq – Discussions are underway between Iraq and Oman to construct a new oil pipeline, raising concerns about a possible avenue for Iran to bypass international sanctions on its oil exports. Ali Nazar al-Satari, the general manager of Iraq’s State Organization for Marketing of Oil (SOMO), revealed last week that the state oil marketer is engaging with Oman’s OQ Trading regarding the ambitious project.
For years, Iraq has inadvertently served as a crucial lifeline for Iran, allowing it to generate vital revenue through oil exports despite facing stringent sanctions designed to curb its nuclear program and regional activities. The existing network, often operating in the shadows, has enabled Iran to discreetly move its oil into the global market.
The proposed pipeline between Iraq and Oman could significantly expand this capacity, creating a new and potentially lucrative channel for Iranian oil to reach international buyers. While the official purpose of the pipeline is to facilitate trade between Iraq and Oman, its strategic location and potential connectivity to existing Iranian oil infrastructure raise red flags.
Experts suggest that by blending Iranian oil with Iraqi or Omani crude, it becomes incredibly difficult to trace the origin of the product, effectively masking its Iranian source. This blending process allows Iran to circumvent sanctions by disguising its oil exports as originating from other countries.
The development has sparked concern amongst international observers, particularly in the United States, which has been actively enforcing sanctions against Iran. The potential for increased Iranian oil revenue could undermine the effectiveness of these sanctions and provide Tehran with greater financial resources to pursue its geopolitical objectives.
The negotiations between Iraq and Oman are still in their early stages, and the details of the pipeline project, including its capacity and route, remain unclear. However, the potential implications for international sanctions enforcement are significant, and the project is likely to face intense scrutiny in the coming months. The situation underscores the complex geopolitical landscape of the region and the ongoing challenges of enforcing sanctions against determined actors. The completion of this pipeline could reshape the regional energy market and have far-reaching consequences for global oil trade.
Baghdad, Iraq – Discussions are underway between Iraq and Oman to construct a new oil pipeline, raising concerns about a possible avenue for Iran to bypass international sanctions on its oil exports. Ali Nazar al-Satari, the general manager of Iraq’s State Organization for Marketing of Oil (SOMO), revealed last week that the state oil marketer is engaging with Oman’s OQ Trading regarding the ambitious project.
For years, Iraq has inadvertently served as a crucial lifeline for Iran, allowing it to generate vital revenue through oil exports despite facing stringent sanctions designed to curb its nuclear program and regional activities. The existing network, often operating in the shadows, has enabled Iran to discreetly move its oil into the global market.
The proposed pipeline between Iraq and Oman could significantly expand this capacity, creating a new and potentially lucrative channel for Iranian oil to reach international buyers. While the official purpose of the pipeline is to facilitate trade between Iraq and Oman, its strategic location and potential connectivity to existing Iranian oil infrastructure raise red flags.
Experts suggest that by blending Iranian oil with Iraqi or Omani crude, it becomes incredibly difficult to trace the origin of the product, effectively masking its Iranian source. This blending process allows Iran to circumvent sanctions by disguising its oil exports as originating from other countries.
The development has sparked concern amongst international observers, particularly in the United States, which has been actively enforcing sanctions against Iran. The potential for increased Iranian oil revenue could undermine the effectiveness of these sanctions and provide Tehran with greater financial resources to pursue its geopolitical objectives.
The negotiations between Iraq and Oman are still in their early stages, and the details of the pipeline project, including its capacity and route, remain unclear. However, the potential implications for international sanctions enforcement are significant, and the project is likely to face intense scrutiny in the coming months. The situation underscores the complex geopolitical landscape of the region and the ongoing challenges of enforcing sanctions against determined actors. The completion of this pipeline could reshape the regional energy market and have far-reaching consequences for global oil trade.
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