Iraq and Syria sign deal to revive oil pipeline, with US-led consortium

Iraq and Syria have signed a landmark agreement in Washington to rehabilitate and reconstruct a critical crude oil pipeline connecting Iraqi fields to Syria's Mediterranean coast. The memorandum of understanding was signed during the US-Iraq Business Council meeting, with US Energy Secretary Chris Wright in attendance, according to the Iraqi News Agency.

Pipeline Details and US Involvement

The pipeline runs from Haditha in Iraq to Baniyas in Syria and is expected to have an initial transport capacity of 2 million barrels per day. The US State Department welcomed the agreement, describing it as "a priority infrastructure project of bilateral and regional strategic significance." US energy company Chevron is set to implement the project, which aims to restore a route that has been out of service since the 2003 invasion of Iraq.

Geopolitical and Economic Context

The agreement comes as global shipping through the Strait of Hormuz has sharply declined amid US-Israeli attacks on Iran, prompting countries to seek alternative export routes. The deal also signals a thaw in Iraq-Syria ties and reflects Washington's broader strategy to reshape regional energy infrastructure. Iraq is also expected to sign 50 agreements with the US worth $60 billion.