Ankara and Baghdad have agreed to a one-year extension of their oil pipeline agreement, a move that ensures continued crude flows through a critical export route just days after Iraq's Prime Minister Ali al-Zaidi visited Turkey. The deal, signed in Ankara, covers a daily export capacity of 750,000 barrels and buys time for negotiations on a broader long-term pact. Main Developments Energy Minister Alparslan Bayraktar announced the agreement on X, describing it as the result of a “productive meeting” with Iraqi Oil Minister Bassem Mohammed Khudair. The extension follows the expiration of the decades-old deal on Monday and maintains operations on the Kirkuk-Ceyhan pipeline, which links Iraqi fields to Turkey's Mediterranean terminal at Ceyhan. Prime Minister al-Zaidi, who also posted on X, called the deal “an important strategic milestone” and confirmed that Iraqi and Turkish companies will begin implementing it. The interim arrangement covers 750,000 barrels per day, well below the pipeline's maximum capacity of about 1.5 million barrels daily. Read also: Iran Rejects Trump's Claim as 'New Lie' Amid Hormuz Standoff Background The pipeline has been a cornerstone of regional oil exports for decades, carrying Iraqi crude to Ceyhan, a key outlet for shipments to global markets. Its previous agreement expired on Monday, creating uncertainty for both governments and the oil industry that depends on this route. Saturday's extension comes on the heels of a high-level visit by al-Zaidi to Turkey, signaling a push to strengthen bilateral energy ties. The two sides have also signaled interest in a broader framework agreement covering oil, electricity, and water resources, though no timeline has been announced. Why It Matters This extension provides short-term stability for oil markets that rely on the Kirkuk-Ceyhan route, especially as regional tensions and infrastructure challenges persist. For Iraq, maintaining the pipeline ensures a steady revenue stream from crude exports, while Turkey reinforces its role as a vital energy transit hub. The agreement also lays groundwork for deeper cooperation, potentially linking energy exports with broader economic and political ties. A failure to reach a long-term deal could have disrupted shipments, affecting both countries' economies and global supply chains. What's Next Both governments will now focus on negotiating a comprehensive framework agreement, which is expected to cover oil, electricity, and water resources. Implementation of the one-year transit arrangement will proceed as talks continue, with the goal of finalizing a permanent deal before the extension expires. Observers will watch for progress on the broader framework, which could reshape energy collaboration between Ankara and Baghdad. The interim arrangement offers a window for diplomats to address outstanding issues without the pressure of an imminent shutdown.