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Iraq Eyes New Oil Export Corridor Through Syria to Reduce Reliance on Strait of Hormuz

July 20, 2026

Iraq and Syria have signed a memorandum of understanding to rebuild the historic Kirkuk-Baniyas oil pipeline, aiming to restore a major crude export route from northern Iraq to Syria’s Mediterranean coast. The project is intended to diversify Iraq’s oil export options, reduce dependence on the Strait of Hormuz, and strengthen Syria’s role as a regional energy corridor.

The agreement, signed in Washington on 17 July, covers the reconstruction of the pipeline linking Iraq’s Kirkuk oil fields with the Syrian port of Baniyas. According to Syria’s state news agency Sana, the project targets a transport capacity of up to two million barrels per day. Syria’s Petroleum Company also signed a separate agreement involving Chevron, TI Capital and Qatar-based UCC Holding.

Syrian media described the project as strategically important beyond its economic value, while Kurdish outlet Hawar said it could provide an alternative to the Strait of Hormuz amid renewed concerns over US-Iran tensions. Iraqi officials said the pipeline forms part of a broader strategy to expand export routes through Syria, Turkey and, in a later phase, Jordan’s Red Sea port of Aqaba.

The Kirkuk-Baniyas pipeline began operating in 1952 but was repeatedly shut down for political and security reasons before falling out of service after suffering major damage during the 2003 Iraq war. Syrian officials said the route would be restored and upgraded with additional infrastructure.

If completed, the project could strengthen Iraq’s energy security by reducing reliance on a single export corridor while supporting Syria’s energy sector, attracting investment and increasing the country’s role in regional oil transit.

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