Iraq and Syria sign deal to rehabilitate Mediterranean pipeline, bypass Strait of Hormuz

AI Summary

Iraq and Syria signed a US-brokered deal to rehabilitate the Kirkuk-Baniyas oil pipeline to bypass the Strait of Hormuz, a strategic move to reduce Iran's control over global energy flows. The project involves a consortium including US company Chevron and Syrian-Qatari businessmen, aiming to strengthen regional cooperation and infrastructure.

Iraq and Syria sign deal to rehabilitate Mediterranean pipeline, bypass Strait of Hormuz MEE staff on Fri, 07/17/2026 - 21:00 MEE was the first to reveal that Syria and Iraq planned to unveil pipeline deal in Washington Oil facilities at the Baniyas port refinery on the Mediterranean Sea, Syria, on 15 April 2026 (Bakr Alkasem/AFP) Off Iraq and Syria have signed a cooperation agreement to reconstruct a pipeline running from Iraqi oil fields to Syria’s Mediterranean coast, as part of a US-brokered deal to bypass the Strait of Hormuz. Middle East Eye was the first to reveal that the US was brokering efforts to rehabilitate the Kirkuk-Baniyas oil pipeline, with US ambassador to Turkey and Syria envoy Tom Barrack taking the lead. After MEE's exclusive, Bloomberg, Reuters, The Wall Street Journal, and The Financial Times reported on the expected deal.  The agreement was signed during the US-Iraq Business Council meeting in Washington, DC, by Bassem Abdul Karim Nasr, head of the Basra Oil Company, on behalf of Iraq; and Youssef Qablawi, CEO of the Syrian Petroleum Company, on behalf of Syria. US Energy Secretary Chris Wright oversaw the signing. The US State Department described the pipeline’s renewal as a “priority infrastructure project of bilateral and regional strategic significance”. (adsbygoogle = window.adsbygoogle || []).push({}); "The United States welcomes the engagement of a US-led international consortium to execute the technical and financial aspects of this project," the department said in a statement. The project is notable because the US is trying to deepen ties between Baghdad and Damascus to reduce Iran's influence in the region and its control over global energy flows in the Gulf.  Exclusive: Syria, Iraq and US plan to unveil Mediterranean pipeline deal to bypass Strait of Hormuz Read More » The pipeline is being rehabilitated by a consortium comprising US energy company Chevron, Los Angeles-based TI Capital, and Syrian-Qatari billionaire al-Khayyat brothers, who have secured billions of dollars in deals in Syria spanning finance, infrastructure, real estate, and aviation. The project was one of several unveiled during Iraqi Prime Minister Ali al-Zaidi's visit to the US this week, where he met President Donald Trump at the White House. A senior Iraqi official told MEE that Barrack has developed a good working relationship with Zaidi and wants to use the pipeline as a model for business projects in the Levant that he has trumpeted as benefiting the US and local governments.  The pipeline was completed in 1952 by Iraq’s Petroleum Company with a capacity of around 300,000 barrels per day (bpd). Baghdad shut the pipeline in the 1980s after Syria sided with Iran during the Iran-Iraq war. The line was heavily damaged after the 2003 US invasion of Iraq and is effectively defunct.  The line needs extensive repairs, including new storage tanks, pumps, and electrical systems. One senior regional official told MEE that the pipeline would likely need to be replaced wholesale, with a two to three-year timeline. He added that a consortium of US firms had already been enlisted for reconstruction, indicating the US's commitment to the issue.  Inside Iraq News Post Date Override 0 Update Date Mon, 05/04/2020 - 21:19 Update Date Override 0