Iraq Diversifies Energy Exports Through Syria's Baniyas Port

Over five months, Iraq has been sending fuel oil to Syria's port of Baniyas for export from the Mediterranean. In April 2026, it began shipping fuel oil through Syria, and in September, it started using the same route in reverse, importing gasoline through Baniyas.

The shift followed a crisis that exposed Iraq's dependence on the Gulf. Before shipping through the Strait of Hormuz was disrupted by the US-Israeli war on Iran, Iraq's southern ports handled most of its oil exports, averaging nearly 3.4 million barrels per day.

When crude could no longer be shipped out and storage tanks filled up, production from the main southern fields fell from about 4.3 million barrels per day to 1.3 million on March 8. Iraq's state oil marketer, SOMO, said exports from the southern ports stopped that day.

Baghdad subsequently began directing some shipments to other routes. In July, Basra Oil Co. joined US energy company Chevron and Qatar's UCC Holding in arrangements to study alternative pipelines.