Iran says banking deal with Iraq clears way to recover blocked oil funds

TEHRAN, Iran — TEHRAN — Iran announced it has reached an agreement with Iraq to resolve long-standing banking obstacles that had prevented Tehran from accessing accumulated oil revenues owed by Baghdad. Iranian officials said the deal could allow the country to recover roughly $11 billion in blocked oil receivables. Talks were held at the technical level between officials from Iran's Central Bank and Iraq's Ministry of Finance, the two sides said, with the aim of restructuring the banking mechanisms that had disrupted financial flows between the neighbors. Under the arrangement, the two countries plan to work toward resuming direct interbank transfers in the coming period. Iranian officials said removing the financial barriers would help sustain its energy exports to Iraq and ensure regular payment flows. Tehran also expects the normalization of banking ties to expand bilateral trade and clear the way for new investments. Iraqi officials, meanwhile, said they are continuing steps to align their banking system with international standards. No further details on the timeline or implementation of the agreement were immediately available.