The United States is pushing for a new oil pipeline for Iraq and Syria, bypassing the Strait of Hormuz to break free from Iran’s pressure

The United States is pushing a new oil export pipeline project for Iraq and Syria, routing it via the Baniyas port to bypass the Strait of Hormuz, thereby directly weakening Iran’s future leverage in global energy supply. Trump said he will announce a “significant” oil cooperation deal this week.
（Background recap: Breaking news》Trump announces the U.S. military’s restart of the “Iran blockade”! A 20% cargo protection fee will be forcibly collected for transit through the Strait of Hormuz）
（Background add-on: If you don’t go through the Strait of Hormuz, can oil really not get out? Are there alternatives?）

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• Barak gathers companies including Chevron, with Syrian ports becoming a new gateway
• The risks of the Strait of Hormuz remain unresolved, and Middle East oil-producing countries collectively look for a way out
• Crossing IS remnants’ areas, pipeline reconstruction remains unknown

The United States is actively promoting a new oil export pipeline plan, aiming to export Iraqi crude through Syria, thereby bypassing the Strait of Hormuz and directly weakening Iran’s future leverage in global energy supply.

On the 14th, Trump met with Iraqi Prime Minister Chadi at the White House, revealing that this week or next week he would announce a “significant” new oil cooperation deal.

Barak gathers companies including Chevron, with Syrian ports becoming a new gateway

Thomas Barrack, the U.S. ambassador to Syria and Iraq, has convened officials from both countries, along with multiple companies including Chevron, to discuss restarting a pipeline that has long been idle, running from Iraq to Syria’s west coast. U.S. State Department officials support the plan and expect American companies to participate in related construction.

If the restart goes smoothly, the pipeline would transport crude from the oil fields near Kirkuk in Iraq to Syria’s west coast, helping Middle East oil-producing countries reduce reliance on the Strait of Hormuz. The pipeline’s operations largely stopped after it was damaged during the period when the U.S. led the invasion of Iraq in 2003.

Baniyas port in Syria, located on the Mediterranean coast, already has the country’s largest refinery and is currently seen as a new gateway for Iraq’s crude oil exports.

Insiders said that in recent weeks Chevron, TotalEnergies, Los Angeles investment firm TI Capital, and Qatar’s UCC Holding have all participated in discussions, assessing Syria’s role as an energy export hub. Chevron recently signed potential oil cooperation memorandums with Iraq and Syria, but refused to say whether it would participate in the reconstruction.

The Strait of Hormuz risks remain unresolved, and Middle East oil-producing countries collectively seek alternatives

Over the past few days, tensions in the Middle East have risen again, making the market recognize the urgency of building alternative shipping routes through the Strait of Hormuz.

Countries including Iraq and Kuwait are currently studying whether they can imitate the United Arab Emirates and Saudi Arabia—using oil pipelines built years ago to divert some crude oil exports, thereby reducing reliance on the Strait of Hormuz.

Before the war, Iraq was the second-largest oil producer in OPEC, but because crude oil exports are highly dependent on the Strait of Hormuz, during the war Iraq was forced to cut crude oil production by about 60%, putting heavy pressure on the government’s finances.

Crossing areas with IS remnants, pipeline reconstruction still unknown

On the other hand, building an oil pipeline in Syria is not without obstacles. The potential route would need to pass through Iraq’s western Anbar province and eastern Syria, where Islamic State (IS) remnants are still active. Whether companies are willing to invest will depend on whether Syria’s new government can stabilize the situation after years of civil war.

Although Chevron has already signed a memorandum of cooperation, when asked whether it would participate in reconstruction, it chose not to respond, reflecting the industry’s cautious attitude toward local risks.

Trump supported the political newcomer Chadi to become Iraq’s prime minister in April this year, partly because one of Chadi’s main rivals, former prime minister Nouri al-Maliki, has ties that are too close to Iran. The White House hopes Chadi can rein in Iran-backed militia forces and further open up Iraq’s oil industry to U.S. companies.