Baghdad Sends $737M to Erbil After Breakthrough Oil Deal

Iraq’s federal government has transferred nearly $737 million to the Kurdistan Region to cover the salaries of public sector employees for May, following a months-long freeze caused by disputes over oil exports and budget allocations.

The breakthrough deal requires the Kurdistan Regional Government (KRG) to export all oil through Iraq’s State Oil Marketing Organization (SOMO), with Baghdad pledging continued salary payments and fuel supplies.

While the agreement signals progress, long-term solutions, especially involving international oil companies, remain unresolved.