On Friday, Iraq and Syria agreed to revive a long-idled oil pipeline linking northern Iraq to Syria’s Mediterranean coast as Baghdad looks to reduce its reliance on the Strait of Hormuz following disruptions caused by the recent U.S.-Iran conflict.
Iraq, Syria Sign Deal To Reopen Strategic Oil Export Route
The agreement was signed during a U.S.-Iraq investment summit in Washington, with U.S. Energy Secretary Chris Wright overseeing the signing by Basra Oil Company CEO Bassem Abdul Karim Nasr and Syrian Petroleum Company CEO Youssef Qablawi, CNBC reported.
The pipeline, which runs from Iraq’s northern oil hub of Kirkuk to Syria’s Mediterranean coast, has a nameplate capacity of 700,000 barrels per day. It has remained offline since it was damaged during the 2003 U.S. invasion of Iraq.
“There is so much room to drive improvement in Iraq, to raise oil production, to reduce dependencies on hostile neighbors, to bring freedom, prosperity and abundant energy to the nation of Iraq,” Wright said before the signing.
The agreement comes as Iraqi Prime Minister Ali al-Zaidi visits the U.S. this week, where he met President Donald Trump at the White House on Tuesday.
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Pipeline Revival Aims To Reduce Dependence On Strait of Hormuz
The move follows severe disruptions to Iraqi oil exports during the Iran conflict, when instability in the Strait of Hormuz hindered tanker traffic.
Iraq, OPEC’s second-largest oil producer, relies heavily on its southern export terminals near Basra, making it particularly vulnerable to disruptions in the strategic waterway.
According to OPEC data, Iraq’s oil production dropped to about 1.9 million barrels per day in June, down from roughly 4.2 million barrels per day in February, before the conflict.
Other Gulf producers are also seeking alternatives to Hormuz. The UAE is constructing a second pipeline to Fujairah on the Gulf of Oman, while Saudi Arabia is reportedly evaluating an expansion of its Red Sea pipeline network.
Still, analysts caution that pipelines alone cannot eliminate geopolitical risks.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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