YEREVAN, JUNE 4, ARMENPRESS. Iraq and Iran have begun exchanging crude oil, the Iranian oil ministry’s news agency SHANA said on Sunday, in a deal that will position Tehran to expand its interests in its most important Arab ally in the face of growing pressure from Washington, Reuters reports.

Crude from the Kirkuk field in northern Iraq is being shipped by truck to Iran. Tehran will use the oil in its refineries and will deliver the same amount of oil to Iraq’s southern ports, on the Gulf.

After helping Iraq stifle a Kurdish push for independence last year, OPEC producer Iran positioned itself to take control of oil exports from the region’s giant Kirkuk field.

Baghdad agreed for the first time to divert crude from Kirkuk province, which it retook from the Kurds, to Iran, where it will supply a refinery in the city of Kermanshah.

The pact is likely to create unease in Saudi Arabia, which along with its ally the United States accuses Iran of trying to dominate the Middle East. Tehran denies the allegations.

Iraq and Iran plan to build a pipeline to carry the oil from Kirkuk to avoid having to use trucks.

ENGLISH: Editor/Translator - Stepan Kocharyan