US Supports Iraq-Syria Oil Pipeline Project
Iraq and Syria have officially agreed to reactivate the Kirkuk-Baniyas oil pipeline, which has been inactive since 2003. This step is considered strategic to maintain the smooth flow of Middle Eastern oil exports amid rising geopolitical tensions that have disrupted shipping through the Strait of Hormuz.
The agreement was outlined in a memorandum of understanding (MoU) signed in Washington, United States, on Friday (July 17, 2026) local time. The signing took place between Iraq’s Basra Oil Company and the Syrian Oil Company, and was witnessed by US Secretary of Energy Chris Wright.
One of the main points of the cooperation is the rehabilitation of the oil pipeline connecting Haditha in Iraq with Baniyas on Syria’s Mediterranean coast. The project will be led by US energy company Chevron, along with an international consortium.
The pipeline is part of an existing network that previously transported crude oil from Kirkuk’s oil fields to the port of Baniyas. The infrastructure has been in disuse since being damaged by the United States invasion of Iraq in 2003.
The United States government welcomed the project and considered the pipeline’s resumption of operation vital to regional energy security and bilateral relations between Iraq and Syria.
“The United States welcomes the involvement of a U.S.-led international consortium to implement the technical and financial aspects of this project,” the State Department said in a statement.
The U.S. also described the project as a strategic infrastructure project expected to strengthen stability in the Middle East.
“Today’s announcement marks an important milestone for the region and for the Syria-Iraq relationship,” the statement continued.
According to the U.S. government, the rehabilitated pipeline is projected to have an initial capacity of approximately 2 million barrels of crude oil per day. This capacity is expected to provide an alternative oil distribution channel when shipping routes through the Strait of Hormuz are disrupted.
In addition to the oil pipeline project, Iraq is also said to be expanding economic cooperation with the United States by signing approximately 50 agreements and memoranda of understanding across various sectors, totaling up to US$60 billion.
The reactivation of the Kirkuk-Baniyas route has become increasingly relevant as escalating conflicts in the Middle East disrupt global oil distribution. By establishing an alternative export route to the Mediterranean Sea, Iraq is expected to reduce its dependence on the Strait of Hormuz while maintaining the stability of global energy supplies.
