US Pushes for Iraq-Syria Oil Pipeline to Bypass Strait of Hormuz

The United States is coordinating efforts to construct a crude oil pipeline linking Iraq to Syria, a strategic maneuver designed to bypass the Strait of Hormuz and dismantle Iran’s leverage over global energy transit.

Thomas Barrack, the U.S. special envoy for Syria and Iraq, has initiated negotiations with regional officials and energy conglomerates, including Chevron Corp.

The discussions focus on establishing a secure Mediterranean export corridor that circumvents the volatile Persian Gulf.

A focal point of the U.S. strategy involves resurrecting the Kirkuk-Baniyas pipeline.

The 500-mile system has remained largely dormant since the U.S. invasion of Iraq in the early 2000s and requires billions of dollars in structural rehabilitation.

Neutralizing Tehran’s Chokehold

Washington’s push for alternative routes follows severe disruptions in the Strait of Hormuz, which historically served as Tehran’s primary choke point against regional adversaries.

The recent closure of the strait forced Baghdad to slash its crude production by 60 percent and severely strained government finances.

By rerouting Iraqi crude to Syria’s Baniyas port, the U.S. aims to shield global energy markets from Iranian interference.

President Donald Trump underscored this pivot by hosting Iraqi Prime Minister Ali Al-Zaidi at the White House, signaling an imminent announcement of major new oil partnerships.

The U.S. backed Al-Zaidi specifically to counter Iranian influence in Baghdad, viewing his predecessor as too closely aligned with Tehran.

Washington expects the Iraqi premier to suppress Iran-backed militias while opening the domestic energy sector to American operators.

Corporate Maneuvering and Alternative Routes

Global energy majors are positioning themselves to capitalize on the geopolitical shift. Chevron, TotalEnergies SE, TI Capital, and Qatar’s UCC Holding have participated in talks assessing Syria’s viability as an expanded Mediterranean export hub.

Iraq recently authorized the state-owned Basra Oil Co. to contract Houston-based KBR Inc. for advisory services.

One alternative pipeline route under consideration would link the southern city of Basra to Haditha, eventually branching toward Syria, Türkiye, or Jordan.

Syria’s integration into this energy corridor hinges on broader diplomatic rehabilitation.

Following the 2024 ouster of Bashar al-Assad, the U.S. began lifting terrorism sanctions on Damascus, enabling firms like ConocoPhillips to pursue local operations alongside the new government led by President Ahmed al-Sharaa.

Structural and Security Vulnerabilities

The pipeline initiatives face profound security liabilities across fractured territories. Proposed routes cut directly through Iraq’s Anbar province and eastern Syria, regions where Islamic State remnants maintain operational capabilities.

Furthermore, Iran-backed armed factions in Iraq openly oppose deepening ties with the new Syrian government.

These militias view the energy corridor as a direct threat to Tehran’s interests, raising the specter of targeted sabotage against any rebuilt infrastructure.

Despite the risks, European leaders are increasingly viewing Syria as a critical transit asset.

French President Emmanuel Macron recently traveled to Damascus, a trip prioritizing regional stability and the diversification of European supply lines away from the Gulf.

“If, for example, you want to transport Iraqi oil without relying on the Strait of Hormuz, Syria becomes an important transit route,” TotalEnergies CEO Patrick Pouyanne told reporters during the Damascus visit. “That’s why the country matters.”