The 2025 Iraq oil for water deal is an agreement between Iraq and Turkey signed in November 2025. According to the agreement, Iraq will use its oil export revenues to finance water projects in Iraq by Turkish companies, aiming to solve the country's water crisis. The deal is formally know as the Framework Agreement on the Financial Mechanism for Water Cooperation Projects.
Iraq has been facing an ongoing water crisis for years that got worse during 2024–2025 as there was a decline in water flow in Tigris and Euphrates rivers, caused by climate change, upstream dam construction, reduced rainfall, and pollution. The water shortage has severely impacted agriculture, public health, and urban supply systems, contributing to economic and environmental stress. [1] [2] [3]
Iraq depends on Turkey for its water, as both the Tigris and Euphrates originate in Turkey. This has a great effect on the relations between both countries. Over the years Baghdad has frequently criticized Ankara for the dam projects built upstream and limited release of water. On the other hand, Ankara states that Iraq's water infrastructure is outdated and wasteful. [4] [2] [3]
Prior to the signing, discussions were held between both countries in an attempt to frame a mechanism that enables Iraq to leverage its oil wealth to bring in investment and technical experts for water sector infrastructure while strengthening the relations between both countries before Iraq's general elections. The oil for water deal was signed on 2 November 2025 in Baghdad. Iraqi prime minister Mohammed Shia al-Sudani was present during the signing, as well as Iraqi foreign minister Fuad Hussein and Turkish foreign minister Hakan Fidan during a state visit. [5] [1]
According to the deal, a financial mechanism will be created to transfer some of Iraq's oil export revenues, mainly those earned from sales to Turkey, in to a designated account. This account will be used to fund water infrastructure projects executed by Turkish firms. These projects include building dams, irrigation improvement and land recovery, upgrading wastewater treatment, and modernizing irrigation systems. [6] [7] The deal is presented to the public as unique partnership in which Iraq gets investment in water infrastructure, and Turkey increases its economic ties and influence in the region. However, many of its details, such as pricing, revenue shares, timelines, and legal obligations have not been fully disclosed. [4]
The announced deal has caused both domestic and regional responses. In favor of the deal are Iraqi officials who support this pragmatic approach to Iraq's water crisis, by using its oil revenues. [8] On the other side, many environmental activists, experts, and opposition commentators, claim the most of the details are not known to the public and could actually weaken Iraq's control over its own water resources. The deal puts important water projects in foreign hands and does not ensure that more water will flow into Iraq from upstream rivers. They also point to the timing of the agreement, which was signed shortly before elections, and suggest it may be driven by politics rather than long-term planning for water management. [1] [9] [5]
{{cite web}}: CS1 maint: numeric names: authors list (link)