Iran has warned neighbouring countries against joining what Tehran describes as a US economic war, threatening action against countries that participate in Washington's campaign to isolate the Iranian economy.

Iran's Supreme National Security Council Secretary Mohsen Rezaei reportedly issued the warning on state television, saying countries that impose economic restrictions on Iran would be considered enemies.

He warned that Tehran would first seek negotiations with such countries and urge them to distance themselves from Washington. However, he said Iran could target the interests of countries that refuse to change course.

Rezaei also said Iran had so far focused its attacks on US military bases rather than American economic interests. But he warned that further US sanctions could lead Iran to target American oil and economic companies in the region and elsewhere.

US President Donald Trump has meanwhile threatened severe economic consequences for countries providing what he described as a lifeline to Iran.

Iran Warns US Allies Over Sanctions As Hormuz Tensions And Regional Crisis Escalate

Iraqi prime minister's office said on Sunday (March 19) that Iran's top security official has signed a deal with Iraqi authorities for "protection" of their common border. The development has taken place months after Tehran conducted strikes on Kurdish opposition group in northern Iraq.

Iraq's autonomous Kurdistan region hosts camps and rear-bases operated by several Iranian Kurdish factions, which Iran has accused of serving Western or Israeli interests in the past.

Iran launched cross-border missile and drone strikes against Kurdish groups in November. It accused them if stoking nationwide protests after the death of Kurdish-Iranian woman Mahsa Amini.

Ali Shamkhani, who heads Iran's Supreme National Security Council, inked the deal with his Iraqi counterpart Qassem al-Araji during a visit to Baghdad, the statement said.

It comprises "coordination over the protection of common borders", and will also see the "strengthening of cooperation in several areas of security", the statement from the office of Prime Minister Mohammed Shia al-Sudani added.

Shamkhani denounced "vicious activities by counter-revolutionary elements" in northern Iraq, a reference to the Kurdish groups operating in the country, according to Iran's state news agency IRNA.

He said the agreement signed on Sunday "can completely and fundamentally end the vicious actions of these groups," which the Iranian government labels "terrorist."

(With inputs from agencies)

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

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Iraqi prime minister's office said on Sunday (March 19) that Iran's top security official has signed a deal with Iraqi authorities for "protection" of their common border.

Iraqi prime minister's office said on Sunday (March 19) that Iran's top security official has signed a deal with Iraqi authorities for "protection" of their common border. The development has taken place months after Tehran conducted strikes on Kurdish opposition group in northern Iraq. Iraq's autonomous Kurdistan region hosts camps and rear-bases operated by several Iranian Kurdish factions, which Iran has accused of serving Western or Israeli interests in the past. Iran launched cross-border missile and drone strikes against Kurdish groups in November. It accused them if stoking nationwide protests after the death of Kurdish-Iranian woman Mahsa Amini. Ali Shamkhani, who heads Iran's Supreme National Security Council, inked the deal with his Iraqi counterpart Qassem al-Araji during a visit to Baghdad, the statement said. It comprises "coordination over the protection of common borders", and will also see the "strengthening of cooperation in several areas of security", the statement from the office of Prime Minister Mohammed Shia al-Sudani added. Shamkhani denounced "vicious activities by counter-revolutionary elements" in northern Iraq, a reference to the Kurdish groups operating in the country, according to Iran's state news agency IRNA. He said the agreement signed on Sunday "can completely and fundamentally end the vicious actions of these groups," which the Iranian government labels "terrorist." (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Iran, Iraq ink deal for protection of borders, cooperation in areas of security

Hundreds of leaked Iranian intelligence reports reveal the depth of Tehran's influence in neighbouring, now protest-torn Iraq, The New York Times and The Intercept reported Monday.

The US newspaper and the online news publication said they had verified around 700 pages of reports written mainly in 2014 and 2015 by Iran's Ministry of Intelligence and Security, and sent to The Intercept anonymously.

The secret source, who had declined to meet with a reporter in person, had said they wanted to "let the world know what Iran is doing in my country Iraq".

Iraq has close but complicated ties with both Iran, its large eastern neighbour, and the United States, which opposes Tehran's influence in the region.

The documents "offer a detailed portrait of just how aggressively Tehran has worked to embed itself into Iraqi affairs, and of the unique role of General (Qasem) Soleimani," wrote the outlets.

Soleimani, the head of the Iranian Revolutionary Guard Corps' elite Quds Force, is Tehran's point man on Iraq and travels there frequently during times of political turmoil.

Amid Iraq's largest and deadliest protests in decades, Soleimani has chaired meetings in Baghdad and Najaf in recent weeks to persuade political parties to close rank around Iraqi premier Adel Abdel Mahdi, sources have told AFP.

In one of the Iranian leaks, Abdel Mahdi is described as having had a "special relationship" with Tehran when he was Iraq's oil minister in 2014.&nbsp;

The prime minister's office told AFP it had "no comment" for the time being on the report.&nbsp;

The reports also named former prime ministers Haider al-Abadi and Ibrahim al-Jafari as well as former speaker of parliament Salim al-Jabouri as politicians with close Iran links.

According to the NYT, Tehran was able to gain much more access following the withdrawal of US troops from Iraq in 2011, which it said left Iraqi assets of the Central Intelligence Agency "jobless and destitute".

They then turned to Iran, offering information on the CIA's operations in Iraq in exchange for money, the report said.&nbsp;

In one incident, an Iraqi military intelligence officer had travelled from Baghdad to meet with an Iranian intelligence official in Iraq's holy city of Karbala.

During the three-hour meeting, the Iraqi official said his boss, Lieutenant General Hatem al-Maksusi, had told him to pass on the message to Iran that "all of the Iraqi Army's intelligence -- consider it yours".

Al-Maksusi had also offered to give Iran information about a covert system established by the US to eavesdrop on Iraqi phones, run by the premier's office and military intelligence, the reports said.

Hundreds of leaked Iranian intelligence reports reveal the depth of Tehran's influence in neighbouring, now protest-torn Iraq, The New York Times and The Intercept reported Monday.

Hundreds of leaked Iranian intelligence reports reveal the depth of Tehran's influence in neighbouring, now protest-torn Iraq, The New York Times and The Intercept reported Monday. The US newspaper and the online news publication said they had verified around 700 pages of reports written mainly in 2014 and 2015 by Iran's Ministry of Intelligence and Security, and sent to The Intercept anonymously. The secret source, who had declined to meet with a reporter in person, had said they wanted to "let the world know what Iran is doing in my country Iraq". Iraq has close but complicated ties with both Iran, its large eastern neighbour, and the United States, which opposes Tehran's influence in the region. The documents "offer a detailed portrait of just how aggressively Tehran has worked to embed itself into Iraqi affairs, and of the unique role of General (Qasem) Soleimani," wrote the outlets. Soleimani, the head of the Iranian Revolutionary Guard Corps' elite Quds Force, is Tehran's point man on Iraq and travels there frequently during times of political turmoil. Amid Iraq's largest and deadliest protests in decades, Soleimani has chaired meetings in Baghdad and Najaf in recent weeks to persuade political parties to close rank around Iraqi premier Adel Abdel Mahdi, sources have told AFP. In one of the Iranian leaks, Abdel Mahdi is described as having had a "special relationship" with Tehran when he was Iraq's oil minister in 2014. The prime minister's office told AFP it had "no comment" for the time being on the report. The reports also named former prime ministers Haider al-Abadi and Ibrahim al-Jafari as well as former speaker of parliament Salim al-Jabouri as politicians with close Iran links. According to the NYT, Tehran was able to gain much more access following the withdrawal of US troops from Iraq in 2011, which it said left Iraqi assets of the Central Intelligence Agency "jobless and destitute". They then turned to Iran, offering information on the CIA's operations in Iraq in exchange for money, the report said. In one incident, an Iraqi military intelligence officer had travelled from Baghdad to meet with an Iranian intelligence official in Iraq's holy city of Karbala. During the three-hour meeting, the Iraqi official said his boss, Lieutenant General Hatem al-Maksusi, had told him to pass on the message to Iran that "all of the Iraqi Army's intelligence -- consider it yours". Al-Maksusi had also offered to give Iran information about a covert system established by the US to eavesdrop on Iraqi phones, run by the premier's office and military intelligence, the reports said.

Iran developed 'vast influence' in Iraq, spy agency leaks say

Since they erupted a week ago, <a href="https://www.wionews.com/videos/gravitas-violent-protests-in-iraq-at-least-100-dead-over-6000-hurt-254349">deadly protests in Iraq </a>have been tracked closely in Iran where they are seen as a plot to undermine ties between the neighbours.

Tehran has close but complicated relations with Baghdad, holding significant clout among its Shiite political groups.

The two countries fought a devastating war from 1980 to 1988 and Iran's influence in Iraq grew after the US-led invasion toppled longtime dictator Saddam Hussein in 2003.

Clashes that broke out in Iraq last week between protesters and security forces have claimed more than 100 lives, and wounded over 6,000,&nbsp;most of them demonstrators struck by bullets.

The rallies began on Tuesday with calls to reduce corruption and unemployment but have spiralled into demands for the fall of the government and overhaul of the political system.

A string of Iranian officials have&nbsp;since come out with statements accusing their country's arch-foes of being behind the unrest.

"Enemies seek to sow discord but they've failed &amp; their conspiracy won't be effective," supreme leader Ayatollah Ali Khamenei said, quoted on his office's Twitter account.

"Iran and #Iraq are two nations whose hearts &amp; souls are tied together... This bond will grow stronger day by day," he added.

State news agency IRNA said the supreme leader was reacting to the violence in Iraq.

The official news agency weighed in with its own commentary, accusing the US, Saudi Arabia and Israel of stirring the Iraqi protests in order to spoil Iran's ties with Iraq and Syria.

"Unprecedented protests in Iraqi cities... show that some forces inside and outside of the region are seriously concerned about the closeness and cooperation" of Baghdad, Tehran, and Damascus, it added.

Iran's government spokesman Ali Rabiei opened his weekly news conference on Monday with a statement on the Iraqi crisis.

He said there "are ill-wishers who seek to sabotage any opening between us and those neighbours who've had differences of opinions in recent years".

The spokesman called on "the great people of Iraq to show more self-restraint and seek democratic and legal means to reach their demands.

"As always, the Islamic Republic of Iran expresses its readiness to stand beside Iraqi brothers and sisters and help them.

"No form of propaganda can sever the people of Iran and Iraq."

Iran has accused its foes of deliberately stirring trouble in Iraq at a time when vast numbers of pilgrims are heading there for one of the world's largest religious events.

A top military adviser to Khamenei said those behind the unrest would be unable to deter the faithful, however.

"They want to scare people into not going to Arbaeen, but even if it rains arrows and stones, Hussein's lovers will not be afraid," Major General Yahya Rahim Safavi was quoted as saying by Tasnim news agency.

Arbaeen marks the end of the 40-day mourning period for the seventh-century killing of Imam Hussein by the forces of the Caliph Yazid.

Last week, Iran urged citizens who were planning to head to Iraq to delay their travel for the pilgrimage that culminates on October 17 with the Arbaeen commemoration.

On Monday, Iran reopened the Khosravi border crossing with Iraq following its closure last week as the protests raged.

IRNA said the fact that the "provocations" came ahead of Arbaeen showed Iran's enemies were "scared".

Judiciary chief Ebrahim Raisi said those responsible for the unrest in Iraq aimed to undermine Arbaeen.

"The seditionists intend to undermine and sap enthusiasm for this great event," he said, quoted by state television's website.

"The vigilant people of Iraq exposed this sedition. But everyone must be careful. The seditionists are seeking new tricks at any moment to overshadow the Arbaeen ceremony and to undermine it."

The hardline Keyhan newspaper said "evidence" pointed to the Americans, Saudis and Israelis being involved.

A columnist in the reformist Shargh daily also suggested the Americans, Israelis and Saudis might be the "hidden hands" behind the Iraqi protests.

"Even if that is not the case, the chaotic and tense situation in Iraq today can prepare the grounds for these actors to ride the wave to fulfill their objectives and demands," wrote Abdelrahman Fathollahi.

Since they erupted a week ago, deadly protests in Iraq have been tracked closely in Iran where they are seen as a plot to undermine ties between the neighbours. Tehran has close but complicated relations with Baghdad, holding significant clout among its Shiite political groups.

Since they erupted a week ago, deadly protests in Iraq have been tracked closely in Iran where they are seen as a plot to undermine ties between the neighbours. Tehran has close but complicated relations with Baghdad, holding significant clout among its Shiite political groups. The two countries fought a devastating war from 1980 to 1988 and Iran's influence in Iraq grew after the US-led invasion toppled longtime dictator Saddam Hussein in 2003. Clashes that broke out in Iraq last week between protesters and security forces have claimed more than 100 lives, and wounded over 6,000, most of them demonstrators struck by bullets. The rallies began on Tuesday with calls to reduce corruption and unemployment but have spiralled into demands for the fall of the government and overhaul of the political system. A string of Iranian officials have since come out with statements accusing their country's arch-foes of being behind the unrest. "Enemies seek to sow discord but they've failed & their conspiracy won't be effective," supreme leader Ayatollah Ali Khamenei said, quoted on his office's Twitter account. "Iran and #Iraq are two nations whose hearts & souls are tied together... This bond will grow stronger day by day," he added. State news agency IRNA said the supreme leader was reacting to the violence in Iraq. The official news agency weighed in with its own commentary, accusing the US, Saudi Arabia and Israel of stirring the Iraqi protests in order to spoil Iran's ties with Iraq and Syria. "Unprecedented protests in Iraqi cities... show that some forces inside and outside of the region are seriously concerned about the closeness and cooperation" of Baghdad, Tehran, and Damascus, it added. Iran's government spokesman Ali Rabiei opened his weekly news conference on Monday with a statement on the Iraqi crisis. He said there "are ill-wishers who seek to sabotage any opening between us and those neighbours who've had differences of opinions in recent years". The spokesman called on "the great people of Iraq to show more self-restraint and seek democratic and legal means to reach their demands. "As always, the Islamic Republic of Iran expresses its readiness to stand beside Iraqi brothers and sisters and help them. "No form of propaganda can sever the people of Iran and Iraq." Iran has accused its foes of deliberately stirring trouble in Iraq at a time when vast numbers of pilgrims are heading there for one of the world's largest religious events. A top military adviser to Khamenei said those behind the unrest would be unable to deter the faithful, however. "They want to scare people into not going to Arbaeen, but even if it rains arrows and stones, Hussein's lovers will not be afraid," Major General Yahya Rahim Safavi was quoted as saying by Tasnim news agency. Arbaeen marks the end of the 40-day mourning period for the seventh-century killing of Imam Hussein by the forces of the Caliph Yazid. Last week, Iran urged citizens who were planning to head to Iraq to delay their travel for the pilgrimage that culminates on October 17 with the Arbaeen commemoration. On Monday, Iran reopened the Khosravi border crossing with Iraq following its closure last week as the protests raged. IRNA said the fact that the "provocations" came ahead of Arbaeen showed Iran's enemies were "scared". Judiciary chief Ebrahim Raisi said those responsible for the unrest in Iraq aimed to undermine Arbaeen. "The seditionists intend to undermine and sap enthusiasm for this great event," he said, quoted by state television's website. "The vigilant people of Iraq exposed this sedition. But everyone must be careful. The seditionists are seeking new tricks at any moment to overshadow the Arbaeen ceremony and to undermine it." The hardline Keyhan newspaper said "evidence" pointed to the Americans, Saudis and Israelis being involved. A columnist in the reformist Shargh daily also suggested the Americans, Israelis and Saudis might be the "hidden hands" behind the Iraqi protests. "Even if that is not the case, the chaotic and tense situation in Iraq today can prepare the grounds for these actors to ride the wave to fulfill their objectives and demands," wrote Abdelrahman Fathollahi.

For Iran, Iraq's unrest is plot to undo bilateral ties

Iran's supreme leader Ayatollah Ali Khamenei said "enemies" were trying to drive a wedge between Tehran and Baghdad in a tweet on Monday following deadly unrest in neighbouring Iraq.

"#Iran and #Iraq are two nations whose hearts &amp; souls are tied together... Enemies seek to sow discord but they've failed &amp; their conspiracy won't be effective," Khamenei was quoted as saying on his office's Twitter account.

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet">
<a href="https://twitter.com/hashtag/Iran?src=hash&amp;ref_src=twsrc%5Etfw">#Iran</a> and <a href="https://twitter.com/hashtag/Iraq?src=hash&amp;ref_src=twsrc%5Etfw">#Iraq</a> are two nations whose hearts &amp; souls are tied together through faith in God &amp; love for <a href="https://twitter.com/hashtag/ImamHussain?src=hash&amp;ref_src=twsrc%5Etfw">#ImamHussain</a> &amp; the progeny of the Prophet (pbut). This bond will grow stronger day by day. 
 
Enemies seek to sow discord but they’ve failed &amp; their conspiracy won’t be effective. <a href="https://t.co/Psya7CJGLB">https://t.co/Psya7CJGLB</a>
— Khamenei.ir (@khamenei_ir) <a href="https://twitter.com/khamenei_ir/status/1180945275306889216?ref_src=twsrc%5Etfw">October 6, 2019</a></blockquote>
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State news agency IRNA said the supreme leader was reacting to recent violence in Iraq.

More than 100 people have been killed in Iraq since clashes erupted last week between protesters and security forces, the majority of them demonstrators struck by bullets.

The Iraqi authorities have accused "saboteurs" and unidentified snipers of targeting the protesters.

Iran has urged its citizens planning to take part in a major Shiite pilgrimage in Iraq to delay their travel into the country over the violence.

Tehran has close but complicated ties with Baghdad, with significant influence among its Shiite political groups.

The two countries fought a bloody war from 1980 to 1988 and Iran's influence in the country grew after the US-led invasion of Iraq toppled veteran dictator Saddam Hussein in 2003. 
&nbsp;

Iran's supreme leader Ayatollah Ali Khamenei said "enemies" were trying to drive a wedge between Tehran and Baghdad in a tweet on Monday following deadly unrest in neighbouring Iraq.

Iran's supreme leader Ayatollah Ali Khamenei said "enemies" were trying to drive a wedge between Tehran and Baghdad in a tweet on Monday following deadly unrest in neighbouring Iraq. "#Iran and #Iraq are two nations whose hearts & souls are tied together... Enemies seek to sow discord but they've failed & their conspiracy won't be effective," Khamenei was quoted as saying on his office's Twitter account. #Iran and #Iraq are two nations whose hearts & souls are tied together through faith in God & love for #ImamHussain & the progeny of the Prophet (pbut). This bond will grow stronger day by day. Enemies seek to sow discord but they’ve failed & their conspiracy won’t be effective. https://t.co/Psya7CJGLB — Khamenei.ir (@khamenei_ir) October 6, 2019 × State news agency IRNA said the supreme leader was reacting to recent violence in Iraq. More than 100 people have been killed in Iraq since clashes erupted last week between protesters and security forces, the majority of them demonstrators struck by bullets. The Iraqi authorities have accused "saboteurs" and unidentified snipers of targeting the protesters. Iran has urged its citizens planning to take part in a major Shiite pilgrimage in Iraq to delay their travel into the country over the violence. Tehran has close but complicated ties with Baghdad, with significant influence among its Shiite political groups. The two countries fought a bloody war from 1980 to 1988 and Iran's influence in the country grew after the US-led invasion of Iraq toppled veteran dictator Saddam Hussein in 2003.

'Enemies seek to sow discord' between Iran and Iraq: Supreme leader Khamenei

Iraq&#39;s government would consider selling crude through Iran should talks with the autonomous Kurdish region on an oil revenue-sharing agreement fail, a senior oil ministry official in Baghdad told Reuters. 
 
Iraq&#39;s State Oil Marketing Organisation (SOMO) plans to hold talks with the Kurdish Regional Government (KRG), possibly next week, about Iraqi oil exported through Turkey, Deputy Oil Minister Fayadh al-Nema said in an interview on Friday evening. 
 
&quot;If the negotiations come to a close&quot; without an agreement &quot;we will start to find a way in order to sell our oil because we need money, either to Iran or other countries&quot;, he said by telephone. 
 
Iraq, OPEC&#39;s second-largest producer after Saudi Arabia, depends on oil sales for 95 per cent of its public income. Its economy is reeling under the double impact of low oil prices and the war against Islamic State militants. 
 
The Kurdistan region produces around 500,000 barrels per day (bpd) on its territory and exports those volumes via Turkey. Baghdad would not be able to reroute those volumes to Iran but could order shipments of some 150,000 bpd via Iran that is being produced in the nearby province of Kirkuk.&nbsp; 
 
An agreement between Iran and Iraq could function in a similar fashion as oil swap deals Tehran has had with Caspian Sea nations, according to an oil official who asked not to be identified. 
 
Iran would import Iraqi oil to its refineries and export an equivalent amount of its own crude on behalf of Baghdad from Iranian ports on the Gulf. Iraq has ports on the Gulf but they are not linked to the northern Kirkuk fields by pipeline. 
 
Iraq&#39;s state-run North Oil Company resumed pumping crude through the Kurdish-controlled pipeline to Turkey last week as &quot;a sign of goodwill to invite them (the Kurds) to start negotiations,&quot; Nema said. 
 
He said pumping had resumed on the instruction of Prime Minister Haider al-Abadi following &quot;some understanding&quot; between Baghdad and Erbil. Abadi said on Tuesday the decision had been made to avoid damage to reservoirs. 
 
The flow of crude extracted from Kirkuk by North Oil and pumped in the pipeline has been running at about 75,000 bpd since last week, or half the rate before it was halted in March, Nema said. 
 
Should there be an agreement with the Kurds, flow through the pipeline would be increased to more than 100,000 bpd, not to the previous level of 150,000 bpd, he added. 
 
Nema said about 20,000 bpd would be supplied to the refinery of Suleimaniya, in the Kurdish region, and 30,000 bpd would be refined locally in Kirkuk. 
 
The pipeline carries crude to the Mediterranean port of Ceyhan, where the Kurds have been selling it independently on the international market, along with oil produced in their northern region. 
 
The Kurdish government has been calling on Baghdad since March to resume the pumping of Kirkuk crude in full to help Erbil fund its war against Islamic State. Sources in Erbil have said splitting the Kirkuk flows would divide the Kurds and complicate the task of fighting the ultra-hardline militants. 
 
A KRG spokesman in June told Reuters the Kurds are ready to strike an agreement with Baghdad if it guarantees them a&nbsp;monthly revenue of $1 billion, more than double what they make currently from selling their own oil. 
 
The dispute revolves around Kurdish oil exports that Baghdad wants to bring under its control. 
 
&quot;If Baghdad comes and says &#39;OK, give me all the oil that you have and I&#39;ll give you the 17 per cent as per the budget&#39;, which equals to 1 billion, I think, logically it should be the thing to accept,&quot; KRG spokesman Safeen Dizayee said in June. 
 
&quot;Whether this oil goes to the international market or first to Baghdad and then to the market, it doesn&#39;t make any difference,&quot; he added. &quot;We are ready to enter dialogue with Baghdad.&quot; 
 
The Kurdish government stopped delivering crude oil to the central government about a year ago, a decision taken when Baghdad&#39;s payment fell under $400 million a month, Dizayee said. 
 
It is also in a dispute with the central government over Kirkuk, where North Oil produces its crude and which the Kurds claim as part of their territory. The Kurds took control of the region two years ago, after the Iraqi army disintegrated when Islamic State overran a third of the country. 
 
(Reuters)

Iraq's State Oil Marketing Organisation plans to hold revenue sharing talks with the Kurdish Regional Government, possibly next week

Iraq's government would consider selling crude through Iran should talks with the autonomous Kurdish region on an oil revenue-sharing agreement fail, a senior oil ministry official in Baghdad told Reuters. Iraq's State Oil Marketing Organisation (SOMO) plans to hold talks with the Kurdish Regional Government (KRG), possibly next week, about Iraqi oil exported through Turkey, Deputy Oil Minister Fayadh al-Nema said in an interview on Friday evening. "If the negotiations come to a close" without an agreement "we will start to find a way in order to sell our oil because we need money, either to Iran or other countries", he said by telephone. Iraq, OPEC's second-largest producer after Saudi Arabia, depends on oil sales for 95 per cent of its public income. Its economy is reeling under the double impact of low oil prices and the war against Islamic State militants. The Kurdistan region produces around 500,000 barrels per day (bpd) on its territory and exports those volumes via Turkey. Baghdad would not be able to reroute those volumes to Iran but could order shipments of some 150,000 bpd via Iran that is being produced in the nearby province of Kirkuk. An agreement between Iran and Iraq could function in a similar fashion as oil swap deals Tehran has had with Caspian Sea nations, according to an oil official who asked not to be identified. Iran would import Iraqi oil to its refineries and export an equivalent amount of its own crude on behalf of Baghdad from Iranian ports on the Gulf. Iraq has ports on the Gulf but they are not linked to the northern Kirkuk fields by pipeline. Iraq's state-run North Oil Company resumed pumping crude through the Kurdish-controlled pipeline to Turkey last week as "a sign of goodwill to invite them (the Kurds) to start negotiations," Nema said. He said pumping had resumed on the instruction of Prime Minister Haider al-Abadi following "some understanding" between Baghdad and Erbil. Abadi said on Tuesday the decision had been made to avoid damage to reservoirs. The flow of crude extracted from Kirkuk by North Oil and pumped in the pipeline has been running at about 75,000 bpd since last week, or half the rate before it was halted in March, Nema said. Should there be an agreement with the Kurds, flow through the pipeline would be increased to more than 100,000 bpd, not to the previous level of 150,000 bpd, he added. Nema said about 20,000 bpd would be supplied to the refinery of Suleimaniya, in the Kurdish region, and 30,000 bpd would be refined locally in Kirkuk. The pipeline carries crude to the Mediterranean port of Ceyhan, where the Kurds have been selling it independently on the international market, along with oil produced in their northern region. The Kurdish government has been calling on Baghdad since March to resume the pumping of Kirkuk crude in full to help Erbil fund its war against Islamic State. Sources in Erbil have said splitting the Kirkuk flows would divide the Kurds and complicate the task of fighting the ultra-hardline militants. A KRG spokesman in June told Reuters the Kurds are ready to strike an agreement with Baghdad if it guarantees them a monthly revenue of $1 billion, more than double what they make currently from selling their own oil. The dispute revolves around Kurdish oil exports that Baghdad wants to bring under its control. "If Baghdad comes and says 'OK, give me all the oil that you have and I'll give you the 17 per cent as per the budget', which equals to 1 billion, I think, logically it should be the thing to accept," KRG spokesman Safeen Dizayee said in June. "Whether this oil goes to the international market or first to Baghdad and then to the market, it doesn't make any difference," he added. "We are ready to enter dialogue with Baghdad." The Kurdish government stopped delivering crude oil to the central government about a year ago, a decision taken when Baghdad's payment fell under $400 million a month, Dizayee said. It is also in a dispute with the central government over Kirkuk, where North Oil produces its crude and which the Kurds claim as part of their territory. The Kurds took control of the region two years ago, after the Iraqi army disintegrated when Islamic State overran a third of the country. (Reuters)

Iraq plans to sell oil through Iran if talks with Kurds fail