Iraq Begins Importing Petrol via Syria in US-Backed Push to Strengthen Regional Ties

Iraq has initiated petrol imports through Syria, marking a major strengthening of relations between Baghdad and Damascus. An Oil Ministry official confirmed on Sunday that this overland trade route is being utilized to manage trade disruptions through the Strait of Hormuz, with the backing of the US government which is encouraging closer ties between the two nations.

The overland corridor is currently facilitating both the export of Iraqi fuel oil and the import of petrol. Since April, Syria has served as the primary route for Iraqi fuel oil exports, helping to offset shipping disruptions caused by the war in Iran. At least 2.1 million tonnes of Iraqi fuel oil have been transported by lorry to Syria's Baniyas during this period.

According to the Iraqi Oil Ministry official who spoke to The National, the initial cargo containing 32,000 tonnes of imported petrol is currently being unloaded at the Baniyas refinery for subsequent transport to Iraq by lorries. Reuters reported that 77 lorries loaded with the fuel have already left Baniyas heading for the Iraqi border, while another petrol-laden vessel is currently en route to the port.

Despite being a major crude oil producer, Iraq continues to struggle with petrol shortages stemming from refinery complications and energy infrastructure management issues. The transit agreement for the petrol was established between Iraq’s oil marketing arm, Somo, and Qatar's UCC Holding, which is managed by the Al Khayyat brothers—Syrian-Qatari businessmen with strong connections in Washington.

A Syrian official revealed to The National that discussions regarding the expansion of fuel oil flows through Syria took place in New York during a meeting between Syrian President Ahmad Al Shara and Iraqi Prime Minister Ali Al Zaidi, with US special envoy Thomas Barrack in attendance. Meanwhile, Syria has requested that Iraq screen tankers for security threats prior to border crossings.

Geopolitical alignments in the region remain complex, as the post-Bashar Al Assad order in Syria and certain political factions in Iraq maintain close ties with Iran, creating ideological friction. Iranian-backed Iraqi militias previously supported Mr Al Assad and played a significant role in maintaining his rule against the 2011 popular revolt. Amid the Iran war that commenced in February, the US has sought to redirect transport routes strategically, leading to a July agreement under US oversight to reactivate the oil pipeline linking Iraq’s northern oil center of Kirkuk and Syria's port of Baniyas, a project that also involves Qatar's UCC Holding.