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Members of the Kurdish security forces take part in an intensive security deployment on the outskirts of Kirkuk. Oil produced in the area is shipped by truck over the Turkish border.
Members of the Kurdish security forces take part in an intensive security deployment on the outskirts of Kirkuk. Oil produced in the area is shipped by truck over the Turkish border.
(REUTERS)

Why turmoil in Iraq won’t create new oil crisis

The rapid military and political deterioration in Iraq highlights the frailty and incompetence of the central government in Baghdad. But it doesn’t translate into a major world oil crisis, despite the latest jump in prices amid growing concerns about potential supply disruptions.

The fallout could even have a beneficial side effect: improved U.S. relations with Iran, which has signalled its willingness to join Washington in preventing a widening sectarian war. That, in turn, could prompt a further easing of restrictions on Iran’s own oil exports.