An easing of sanctions will allow Chevron to resume its local operations and could see Venezuelan crude sent to the US again.

The approval of prime minister Mohammed Shia al-Sudani’s cabinet brings a reprieve from recent political chaos. However, politics remains sectarian and volatile, while questions about Kurdistan and Iran’s role grow. Al-Sudani also pledged to hold early elections next year in a likely attempt to appease Sadrists, which may generate volatility itself. Al-Sudani also faces numerous chronic obstacles, including corruption, water scarcity, energy shortages and an underperforming private sector. For the energy sector, the end of Iraq’s political deadlock reduces imminent supply risks and may enable new projects to advance, depending on the new government’s policies. Addressing Iraq’s natural gas supply deficit will also be important.