Is Iraq Looking To Open Another Backdoor For Iran To Export Its Oil?

Core Insights - Iran has developed sophisticated methods to evade Western sanctions on its oil exports, primarily through collaboration with Iraq, which allows Iranian oil to be rebranded as Iraqi oil for export purposes [1][2] - Iraq's State Organization for Marketing of Oil (SOMO) is in discussions with Oman's OQ Trading to establish an oil pipeline, which could further facilitate Iran's ability to circumvent sanctions [2][3] Group 1: Oil Export Mechanisms - Iranian oil is often labeled as non-sanctioned Iraqi oil due to shared oil reservoirs between the two countries, making it difficult to trace the origin of the oil [1] - The rebranding process involves changing shipping documents and specifications, along with disabling tracking systems on tankers carrying the oil [1] - At-sea transfers to tankers flying flags of local Asian countries, such as Malaysia and Indonesia, are common practices to obscure the oil's origin [1] Group 2: Iraq-Oman Pipeline Project - The proposed Iraq-Oman oil pipeline would provide Iran with direct sea routes to China and Africa, avoiding scrutiny from Western powers [3] - The deal includes oil storage capacity in Oman, which is not under U.S. sanctions, allowing Iran to continue its energy exports [3] - The pipeline project is part of a broader cooperation plan between Iran and Oman, which includes a significant gas pipeline project that has been delayed due to sanctions [4] Group 3: U.S. Sanctions and Responses - Recent U.S. sanctions have targeted Iraq, particularly regarding the importation of Iranian natural gas, which has historically supplied about 40% of Iraq's energy needs [6] - The U.S. has intensified its sanctions against entities involved in trading Iranian oil, including Chinese firms, as part of a broader strategy to limit Iran's revenue sources [7] - The sanctions are part of a maximum pressure campaign aimed at curbing Iran's influence and activities in the Middle East [5][6]