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Iraq Reopens Overland Oil Route to Syria, Taps into European Markets Amid Rising Geopolitical Tensions

Iraq has resumed shipping oil overland through Syria for the first time in decades, establishing an alternative export pathway to European markets as ongoing conflict between the United States, Israel, and Iran disrupts conventional maritime routes through the Strait of Hormuz.

According to Ali Nazar, who leads Iraq’s state oil marketing organization Somo, an agreement has been finalized to transport 50,000 barrels daily of Basra medium crude through Syrian territory to Mediterranean ports. The oil will ultimately reach European consumers via the Syrian coastal facility at Baniyas, with expectations for increased volumes in the future.

Syria’s official news service SANA confirmed that fuel transport convoys have begun crossing into the country at the al-Tanf border point, representing what authorities describe as Syria’s reemergence as a regional energy transit corridor. The Syrian Petroleum Company has indicated it will temporarily store these shipments before moving them onward to Baniyas for international export.

Safwan Sheikh Ahmad, serving as communications director for the Syrian petroleum authority, revealed that the initial convoy consisted of 299 tanker trucks. He characterized this development as an important move toward reestablishing Syria’s historical position as a vital energy transportation link within the broader Middle Eastern region.

The arrangement is anticipated to produce revenue streams for Damascus while simultaneously revitalizing transit infrastructure that sustained damage throughout Syria’s prolonged civil conflict. Syrian government representatives have emphasized that the process
demonstrates their nation’s capacity to manage substantial energy flows according to international operational standards.

Reuters reporting indicates that Somo has additionally committed to providing approximately 650,000 metric tonnes of fuel oil monthly during the second quarter of the year, with all shipments being transported via ground routes through Syria.

This overland route has remained dormant for Iraqi oil exports for multiple decades. However, sources familiar with the situation told Reuters that the combined impact of Syria’s post-war conditions and the disruptions stemming from the Iran conflict have transformed this corridor into a practical, though costlier, alternative pathway.

Muayyad al-Dulaimi, representing Anbar province in western Iraq, described the reopening of the al-Walid border crossing to Al-Araby Al-Jadeed as an extraordinary measure prompted by regional
instability. He specified that during an initial phase, 101 tanker trucks moved approximately 3.2 million liters of crude oil to the Baniyas terminal.

Al-Dulaimi framed this development as component of a comprehensive strategy designed to establish backup export routes as dangers mount along critical maritime shipping lanes. Despite the currently modest volumes being transported, he emphasized that the route assists in maintaining export operations and reducing strain on government revenues dependent on oil sales.

Iraqi government officials have been transparent that this arrangement represents a temporary solution. The elevated costs and logistical challenges associated with overland transport mean Baghdad will ultimately rely on restoring stable conditions across its primary export channels for long-term viability.

Syrian President Ahmad al-Sharaa recently stated that any disruption affecting the Red Sea or Strait of Hormuz positions Syria as a secure alternative for supply chain continuity due to its strategic geographic positioning. He warned that European nations would face energy supply interruptions from such maritime disruptions.

In a separate development during early March, Iraq reactivated crude oil exports from the Kirkuk oil fields to Turkey’s Mediterranean port at Ceyhan following an agreement between Baghdad and the Kurdistan Regional Government. The state-operated North Oil Company announced these shipments would commence with initial daily capacity around 250,000 barrels.

Global petroleum prices have experienced significant increases since hostilities began on February 28, with Brent crude, the international pricing benchmark, momentarily reaching $119 per barrel earlier this week. These elevated prices reflect market concerns about supply disruptions from one of the world’s most strategically important energy-producing regions.