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US supports Iraq-Syria oil pipeline revival to bypass Strait of Hormuz

Created at 14 Jul · 8:51 PM1 source↑ Market-relevant
IN SHORT

The United States is backing efforts by Iraq and Syria to reconstruct a crude oil pipeline connecting Kirkuk to Syria's Baniyas port. This initiative aims to reduce reliance on the Strait of Hormuz, which Iran has threatened to control amid escalating regional tensions.

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Key Numbers

300,000barrels per day pipeline capacity
1952pipeline completion year
1980spipeline shutdown decade
2003pipeline damage year
2-3years for pipeline replacement
95%of Iraqi oil flows through Strait of Hormuz
90%of Iraq's state budget from oil sales
8%Iraq's seaborne oil exports in May of 2025 average

Who's Involved

Donald Trump
US President expected to meet with Iraqi Prime Minister
Ali al-Zaidi
Iraqi Prime Minister set to meet with US President
Tom Barrack
Trump's envoy to Syria and Iraq working on pipeline deal details
Ahmed al-Sharaa
President of Syria
Bashar al-Assad
Ousted ruler of Syria
Capital TI
US firm in preliminary agreement for pipeline study
Chevron
US firm in preliminary agreement for pipeline study
US supports Iraq-Syria oil pipeline revival to bypass Strait of Hormuz

↳ Why This Matters

The revival of this pipeline could significantly alter global oil trade dynamics by providing an alternative route for Iraqi crude, thereby reducing Iraq's vulnerability to Iranian actions in the Strait of Hormuz and potentially easing global oil supply concerns amid heightened geopolitical tensions.

Key facts

  • The US is supporting the reconstruction of a crude oil pipeline between Iraq and Syria.
  • The pipeline, originally from Kirkuk to Baniyas, has been defunct since the 1980s and requires extensive repairs.
  • The project aims to bypass the Strait of Hormuz, a critical chokepoint threatened by Iran.
  • An agreement is expected to be announced next week during a meeting between Iraqi PM Ali al-Zaidi and US President Donald Trump.
  • US firms have been selected for the reconstruction, estimated to take two to three years.

The United States is actively supporting the rehabilitation of a critical oil pipeline connecting Iraq and Syria, a move aimed at circumventing the Strait of Hormuz, a vital waterway increasingly under threat from Iran. A State Department official confirmed US backing for the project, anticipating American companies' involvement in its advancement.

The pipeline, originally constructed in 1952 with a capacity of 300,000 barrels per day, has been inoperable since the 1980s and suffered significant damage after the 2003 US invasion of Iraq. Sources indicate that the project requires extensive repairs, potentially necessitating a complete replacement over two to three years. A consortium of US firms has reportedly been selected for this reconstruction.

An agreement to revive the pipeline is slated for announcement next week during a meeting at the White House between Iraqi Prime Minister Ali al-Zaidi and US President Donald Trump. This initiative gains particular urgency as Iran has asserted control over the Strait of Hormuz in response to the ongoing US-Israeli war, significantly impacting Iraq's oil exports, which constitute 90% of its state budget and 95% of its oil transportation relies on the Strait.

Iraq has already begun exporting small volumes of crude via tanker truck through Syria, highlighting its vulnerability to Iranian actions. The US has recently escalated strikes against Iran in an effort to reduce Tehran's ability to disrupt shipping in the Strait of Hormuz, which has become virtually blocked.

Frequently asked questions

The Strait of Hormuz is a vital maritime chokepoint through which a significant portion of the world's oil supply, including 95% of Iraq's oil exports, is transported.

The pipeline's revival is urgent due to Iran's increasing control over the Strait of Hormuz amid regional conflict, which threatens Iraq's oil exports and its economy.

The pipeline requires extensive repairs and may need to be completely replaced, a process that could take two to three years.

What Happens Next

01An agreement to revive the pipeline is expected to be unveiled next week.
02Iraqi Prime Minister Ali al-Zaidi is scheduled to meet with US President Donald Trump at the White House.

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Cadence
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How It Developed

The US is supporting efforts by Iraq and Syria to reconstruct a crude oil pipeline between the two countries.
The pipeline, originally completed in 1952, had a capacity of 300,000 barrels per day but has been defunct since the 1980s.
The project has gained urgency due to Iran asserting control over the Strait of Hormuz amid the US-Israeli war.
Iraq, which exports 95% of its oil through the Strait of Hormuz, has seen its seaborne exports drop significantly.
An agreement to revive the pipeline is expected to be unveiled next week during a meeting between Iraqi Prime Minister Ali al-Zaidi and US President Donald Trump.
A consortium of US firms has been selected for the reconstruction, which could take two to three years.
US forces have conducted multiple strikes against Iran in response to attacks on commercial vessels in the Strait of Hormuz.

Sources

T1
US supports efforts by Iraq and Syria to reconstruct oil pipelineMiddle East Eye
T2
Iraq, Syria, and U.S. set to revive Baniyas pipeline to alleviate global oil crisis / The New Voice of Ukraineenglish.nv.ua
T2
Exclusive: Syria, Iraq and US plan to unveil Mediterranean pipeline deal to bypass Strait of Hormuz | Middle East Eyemiddleeasteye.net

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