Iraqi Kurd Army Agrees To Return To 2003 Border, Oil Slides

In a dramatic de-escalation of recent hostilities in Iraqi Kurdistan, where in a blitz campaign the Iraqi army was able to recapture Kirkuk , effectively regaining control of the oil-rich region, the Kurdish Peshmerga forces, i.e. the army of the autonomous region of Iraqi Kurdistan told Sky News Arabia that it has agreed to return to the 2003 Iraq border, which if confirmed would be a major concession to Iraq which has been pushing for just this conclusion for the past month.

The opportunistic Kurdistan Regional Government increased its territory by at least 40% during the war with Islamic State, bringing many of these disputed areas under its control after the Iraqi army withdrew in the face of advancing ISIS militants. However, as Iraqi forces and pro-govt militias have already regained control of many of these areas, including Kirkuk, over the past 48 hours, the Iraqi Kurdistan region had no other choice. According to the Kurdish news service Rudaw, the pre-2003 borders "exclude disputed areas such as Kirkuk, Khanaqin, Tuz Khurmatu, Makhmour, and Zumar from the Kurdistan Region."

Incidentally, at the start of September, Rudaw reported that Baghdad wants the Kurdistan Region to withdraw from disputed areas and return to pre-2003 borders between the autonomous region and Iraq, said Kurdistan President Masoud Barzani. At the time Barzani vowed that the Peshmerga will not retreat from any areas that were taken "with the blood of fallen soldiers." It took one month for him to change his tune.

Barzani said at the time that the planned independence referendum can work as a peaceful tool to settle outstanding issues between Erbil and Baghdad. In retrospect it turned out to be an epic disaster for the Kurdish autonomous region, which is about to lose a substantial portion of its territories.

Meanwhile, the Iraqi recalamation of Kirkuk appears to have gone without bloodshed, with US Coalition forces stating that aside from one incident of "miscommunication" no further reports of armed conflict between ISF-Kurdish Peshmerga.

If Sky News Arabia is confirmed, it would imply that a major geopolitical risk factor, and a potential upside catalyst for oil prices, has been eliminated. Tangentially, earlier today Goldman released a report called the "return of oil's geopolitical risks" in which it claimed that "Geopolitical risks to the oil market have continued to intensify, with Iraq’s military seizing oil fields formerly controlled by the Kurdistan Regional Government (KRG) yesterday, Monday, October 16 and President Trump decertifying the Iranian deal on Friday."

Well, at least half of these risks may now have been resolved, and if so expect the price of oil to react appropriately, which it is indeed doing...

Finally, Masoud Barzani, president of the autonomous Kurdish Iraqi region, issued the following statement on Tuesday:

Salahadin, Kurdistan Region of Iraq, ( President Masoud Barzani issued a statement today regarding the recent events in the Kurdistan Region which commenced with the attack on the city of Kirkuk in the hands of the Iraqi Popular Mobilization Forces.


The statement begins by referring to the fact that the people of Kurdistan have throughout history been oppressed and have lived with injustice. This injustice and this oppression have stemmed, the President says from the Kurds' defense of their identity. They have been, he adds, subjected to genocide and mass murder, the most recent of such atrocities was in the hands of the terrorists of the Islamic State. The statement reminds the people of Kurdistan, Iraq and the world that in spite of these atrocities, the people of Kurdistan have always been against waging wars and have worked in pursuit of peace.


In reference to the recent events in Kirkuk, the President states that some people from a certain political party had unilaterally paved the way for such attack whose result was the withdrawal of the Peshmerga forces from Kirkuk. 


The statement reassures the people of Kurdistan that all of the resources of the Kurdistan Region will be allocated for the security and stability of the Kurdistan Region.


President Barzani calls upon the political entities of the Kurdistan Region to work towards unity. He also commends the endurance of the people of the Kurdistan Region. He also calls upon all of the media outlets of the Kurdistan Region to work responsibly during these arduous times facing the people of the Kurdistan Region.


The President concludes the statement by saying that those who paid the ultimate sacrifice for Kurdistan have not been lost in vain, and the same shall be true for those who voted for an independent Kurdistan.


Scar Bro TeaClipper Tue, 10/17/2017 - 12:48 Permalink

Spoken like a true Kurd perhaps?Hey I don't have a lot of background on this but this does seem to be factual. Not only that but if you look at the ancient maps, Armenia used to be pretty huge. Suspiciously overlapping where the proposed Kurdistan would be. While the Turks most certainly did the fucking, an idiot would deny that the Kurds had the most to gain.... and the Kurds are Muslim after all so they were hand in hand with the Turks on this one. Not only that but go and find out shit about the Christian slaves that the Turks AND the Kurds kept. Apparently the law was that if a Turk killed the slave of a Kurd the penalty was that the Kurd got to kill a slave owned by the Turk. Guess what. The slaves were always Armenian.So go on defend it. I'm willing to be proven wrong.

In reply to by TeaClipper

General Titus RagaMuffin Tue, 10/17/2017 - 16:35 Permalink

Kurdish Peshmerga is a Israeli creation Arabs, Turks, and Persians see the Kurds as a recalcitrant nomadic mountain tribe and stooge of Israeli interests. In the mid 1960s and 70s Israel cooperated with Iran, then a U.S. ally under the Shah, to fight against its Arab enemies - Iraq, Syria and Egypt. As part of the cooperation the Mossad sent Lt. Colonel Tzuri Sagi to develop plans for and build up a Kurdish army to fight Iraqi troops in northern Iraq. Tzuri Sagi was also responsible for the Israeli assassination attempts against Saddam Hussein. His Kurdish cooperation partner was the leader of the Barzani clan, Mullah Mustafa Barzani. The Kurdish army the Israelis created is now known as Peshmerga. The son of Mullah Mustafa Barzani, Masoud Barzani, is now the illegitimate president of the Kurdish region of Iraq.…

In reply to by RagaMuffin

Buck Johnson Tue, 10/17/2017 - 12:14 Permalink

They where told to give this up or no support form the west at all, pure and simple.  A major deal was struck and the Kurds where told to get back to their 2003 lines. 

itstippy Tue, 10/17/2017 - 12:21 Permalink

At the time Barzani vowed that the Peshmerga will not retreat from any areas that were taken "with the blood of fallen soldiers." It took one month for him to change his tune. Trying to hang on to the disputed areas would require the blood of many, many more fallen Kurd soldiers and would inevitably fail.  Barzani is not an idiot.  Even Rommel, the expert of desert offensive warfare, knew when to cut his losses, withdraw, and avoid the total annihilation of his army (against lunatic Hitler's direct orders).

Son of Captain Nemo Tue, 10/17/2017 - 12:36 Permalink

So answer this one... How the fuck can oil be sliding if that oil is being prepped to be paid for in a post-petrodollar "basket of currencies" with this bit of news???...

Does this mean "operation decapitation DPRK" is off and that the PRC and Russian Federation prepared a "rescue package" for Pax Americana?!!!

Son of Captain Nemo alangreedspank Tue, 10/17/2017 - 13:05 Permalink

Because oil is not "being prepped to be paid for in a post-petrodollar basket of currencies" ?


You must be one of those "five dancin Kikes" that delusionally "observes" and "loses" EVERYTHING in the process!!!

Keep the "change" $$$ along with the jet (…). It's "free" and always has been courtesy of the American taxpayer which is why both the currency and the plane(s) "SUCK"!

In reply to by alangreedspank

johnnycanuck Tue, 10/17/2017 - 12:45 Permalink

Lots of swamp critters upset over these developments according to this article;"Rep. Trent Franks, R-Ariz., who sits on the House Armed Services Committee and has introduced a resolution supporting Kurdish independence from Iraq, went further by suggesting that the United States should cut off financial support to Baghdad. “I urge Iraqi Prime Minister [Haider] al-Abadi to fulfill his pledge to prevent any external or internal attack against the Kurds and prove Baghdad is not the puppet of Tehran,” Franks said in a statement. “Otherwise, the US will have no other choice but to pull funding as it cannot in good conscience send money to an Iranian patsy working to subvert American interests.” The concern is bipartisan. Senate Minority Leader Chuck Schumer, D-N.Y., also expressed his outrage after issuing a statement strongly supportive of Kurdish independence following last month’s referendum."… One might almost think Iraq is a US state the way these people carry on.  

dogismycopilot Tue, 10/17/2017 - 13:12 Permalink

The Globalist are losing control and are starting their censorship war.You Tube is now blocking Alex Jones Channel videos unless you are signed in. Zerohedge will be hit with something soon - too much good intel and analysis being presented here in comments and in stories.Full Show - Experts & Eyewitnesses Agree: Official Vegas Massacre Story Is A Sham - 10/16/2017

gdpetti Tue, 10/17/2017 - 14:11 Permalink

Remember that Barzani, our 'friend', didn't have a recent election to support his position as the head of the Kurdish people, so his authority is subject to dispute. That, and it seems the Pershmergas aren't stupid in playing this CIA/MOssad/MI6 game of deceit... of being used as puppets and thrown away... let Barzani do it... and this pattern will replicate in Syria.. until Erdo the Idiot's New Ottoman Empire wetdream explodes in his hand... not the orgasm he expected.... he's still playing his game in the NW.

OliverAnd zeroboris Tue, 10/17/2017 - 15:50 Permalink

Iran is trying to secure its own borders as there is a large Kurdish population within its own borders.  In addition they want to show support to their brothers the Turks who also have a 30 million Kurdish population.  Iran and Turkey are scared that a civil war will dent their aspirations to create a nation that the Muslim Brotherhood dreams of.

In reply to by zeroboris

OliverAnd Tue, 10/17/2017 - 15:46 Permalink

The Kurds have more important things to attend to.  They need to join with the Kurdish forces in Syria and secure an opening to the Mediterranean.  Turkey is screwed as within Turkish borders there exist another 30 million Kurds ready to fight for their liberation.  Oh man is this going to heat up the region soon... this thanksgiving will be something else.

OliverAnd Volkodav Tue, 10/17/2017 - 15:58 Permalink

Really?This is Kurdistan: gap between Syria and Iraq?  That Turkish gap has 30 million Kurds...You are under the Putin illusion that Russian support to these nations will not have a negative impact on Russia's global credibility.  Are you dreaming of the Ottoman Emprire enslaving the Russians once again? 

In reply to by Volkodav