For years, Iraqi Kurdistan and Iran have been in talks to construct a pipeline that would transport Kurdish oil to the Iranian market. Until now, the negotiations have lagged as the Kurdistan Regional Government (KRG) instead focused on developing an oil export route through Turkey. But new momentum may be building in favor of the Iranian option , particularly as Kurdish coffers run low and Tehran maneuvers to minimize Ankara's influence. If finalized, the new pipeline would bring the KRG one step closer to the financial independence it seeks. For Iran, the impending agreement makes practical, political and strategic sense. Iran's largest oil-producing regions lie in the south, well away from the country's northern refineries and population centers. Swapping oil with its western neighbor would give Tehran a way to support those areas without sending its own crude north.