Iraq threatens to cut off oil if sanctions imposed

"Northern Iraq cannot be pressured," al-Mashhadani told reporters in the Syrian capital of Damascus. "Iraq is a rich country, and if there are economic pressures, we will cut off the Ceyhan pipeline[s]," he said, referring to two oil pipelines that run from northern Iraq to Turkey's Ceyhan oil terminal on the Mediterranean Sea.

Turkey has threatened to stage an incursion into northern Iraq if Iraqi Kurds and US-led coalition forces do not crack down on the PKK based there, particularly following an ambush Sunday that killed 12 Turkish soldiers near the border.

The decision to pursue economic measures was made with the hope of avoiding such an operation, which could have destabilizing effects on the entire region. Turkey's influential National Security Council (MGK), including the top leadership of the Cabinet and the commanding officers of the powerful Turkish military, agreed on Wednesday to take economic measures to force cooperation by Iraqis against the PKK, which is listed as a terrorist organization by a large majority of the international community.

The MGK meeting concluded with a decision to recommend that the government "first take necessary economic measures against those groups directly or indirectly supporting the separatist terrorist organization in the region." Economic measures will cause serious problems for Iraq's relatively stable north, which is highly dependent on Turkish investment as the main engine of its economy. From food to energy, all vital supplies are obtained from Turkey. Turkish contractors are restructuring the north by constructing roads, hospitals, residential buildings, apartments and infrastructure. At the MGK meeting possible areas of embargo were identified, and it was decided that no measures should be implemented with respect to health and medication, despite the fact that 75 percent of medical products and medication are transported through the Habur border crossing.

Turkey may cut the electrical power provided to northern Iraq and prevent the passage of fuel products. Moreover, Turkey may stop cement, iron and paper exports to Iraq, possibly leading to serious repercussions in the reconstruction of Iraq. Also, as a primary supplier, Turkey may opt for implementing measures concerning the foodstuffs supplied to the region. The MGK also decided that the Cabinet should determine the details of the embargo in the shortest time possible and make the embargo decision. The date of the next Cabinet meeting is currently not known, as its original date coincides with the anniversary of the establishment of the Turkish Republic.

Ankara rejects reported Syria mediation

Al-Mashhadani, who is on a five-day visit to Syria, also said Syria is considering mediating between Turkey and Iraq in an effort to end the crisis. Yet Turkish officials at the Foreign Ministry, speaking on condition of anonymity, told Today's Zaman on Friday that there is no such plan. "There is a plan for mediation, and it will be announced at the right time if the conditions are met," he said, following talks with Syrian President Bashar Assad and his deputy, Farouk al-Sharaa. Al-Mashhadani did not elaborate but said Assad expressed readiness to assume a positive role in solving the problem.

However, a senior Turkish official said, "A plan for Syria's mediation between Turkey and Iraq is out of question."

Al-Mashhadani said Iraq was "ready to do everything that would safeguard Turkish national security." He also expressed hope that Turkey would not pursue a military incursion, saying "a political peaceful solution is the best."