Iraq-Syria Oil Pipeline Reconstruction Plan

Iraq intends to rebuild a long-dormant crude-oil pipeline that would carry its exports through Syria to the Mediterranean port of Banias, bypassing the Strait of Hormuz. Reuters cited two sources familiar with the effort, estimating a reconstruction period of four years and a minimum cost of $15 billion. The revived route would link Iraq’s southern and northern fields to a new hub in Haditha before reaching Banias.

The Hill

The original pipeline, which connected the northern Kirkuk region to Banias, was heavily damaged during wars and has not operated regularly since the 1980s. Recent disruptions in the Strait of Hormuz—stemming from Iran’s conflict with the United States and Israel—have prompted Iraq to seek alternatives to protect its export flow. Iraq holds the world’s fifth-largest proven crude-oil reserves, making uninterrupted export routes a critical economic priority.

The Hill

The plan calls for an integrated network of new pipelines to connect Iraq’s fields to the Syrian outlet, requiring land-use approval from Syrian leader Ahmad al-Sharaa. U.S. financial support and commitments from major energy firms—including Chevron, ConocoPhillips, and Qatar’s UCC Holding—were secured after Iraqi Prime Minister Ali al-Zaidi’s meeting with President Donald Trump. Chevron Chair and CEO Mike Wirth warned that the war-driven market volatility has left energy markets “somewhat fragile and uncertain.”

The Hill

He described the pipeline as a means to make the strait “irrelevant” for Iraq’s oil trade.

The Hill

• “Over the next two years, the strait is going to become irrelevant. It is going to become just another body of water,” — Scott Bessent, treasury secretary

The Hill