Iraq-Syria Pipeline Deal Reroutes Oil Exports Through Mediterranean

Iraq and Syria have signed an agreement to rebuild the Kirkuk-Baniyas crude oil pipeline, which will reroute Iraq's oil exports through the Mediterranean. The pipeline, stretching from northern Iraq to Syria's Mediterranean coast, was offline since the 2003 Iraq invasion but is expected to carry significantly more oil than it did before, with a transport capacity of 2 million barrels per day.

The US State Department welcomed the agreement, which involves Iraq's Basra Oil Company and Syria's Syrian Petroleum Company, backed by a US-led international consortium that includes Chevron. The pipeline will provide geographic diversification for Iraq, which is OPEC's second-largest producer, and offer direct access to European markets.

Before this deal, Iraq had been relying on truck-based crude shipments to Syria, targeting 50,000 barrels per day, as a stopgap measure due to disruptions in the Strait of Hormuz. The new pipeline will avoid the entire Persian Gulf shipping lane altogether.