Turkey to approve troops to Iraq in defiance of U.S.

By Gareth Jones

ANKARA (Reuters) - Turkey will defy international pressure on Wednesday and grant its troops permission to enter northern Iraq to crush Kurdish rebels based there, though it has played down expectations of any imminent attack.

Washington, Ankara's NATO ally, says it understands Turkey's desire to tackle rebels of the outlawed Kurdistan Workers Party (PKK), but fears a major incursion would wreck stability in the most peaceful part of Iraq and potentially in the wider region.

Turkey's stance has helped drive global oil prices to $88 a barrel, a new record, and has hit its lira currency as investors weigh the economic risks of any major military operation.

Parliamentary approval would create the legal basis for military action, essentially giving the army a free hand to act as and when it sees fit.

By law, Turkey's parliament must approve the deployment of Turkish troops abroad. Parliament is expected to approve the request from Prime Minister Tayyip Erdogan's cabinet by a large majority following an open debate.

"Passage of this motion does not mean an immediate incursion will follow, but we will act at the right time and under the right conditions," Erdogan told his ruling AK Party on Tuesday.

"This is about self-defense," he said in televised remarks.

Iraqi Vice-President Tareq al-Hashemi lobbied Erdogan and President Abdullah Gul in Ankara on Tuesday to refrain from military action and to seek a diplomatic solution.