Iraqi Oil Minister Bassem al-Abadi signed an agreement with Syria on Friday to build a new oil pipeline, part of a package of economic deals reached during Prime Minister Ali al-Zaidi’s visit to the United States. Asharq Al-Awsat had earlier reported, citing Syrian, Western, and Iraqi sources, that Baghdad and Damascus were preparing to sign a US-backed oil-link agreement during al-Zaidi’s visit to Washington. The sources said the project could mark the start of a new economic alliance in the Arab Mashreq. The pipeline would revive Iraqi oil exports through Syria and replace the historic Kirkuk-Banias route, which has been out of service for years. A Syrian oil-sector official said the two countries were close to signing a preliminary agreement. The new pipeline would carry about 2 million barrels per day and take roughly 30 months to complete after the final deal is signed. Tom Barrack, the US ambassador to Türkiye and special presidential envoy to Syria and Iraq, speaks at the US Iraq Business Summit at the U.S. Chamber of Commerce, Friday, July 17, 2026, in Washington. (AP Photo/Rod Lamkey, Jr.) Diversifying export routes The move comes as Iraq seeks to diversify its oil export routes and reduce its reliance on Gulf shipping lanes amid security threats that affect traffic through the Strait of Hormuz, the main outlet for Iraqi crude exports. US Energy Secretary Chris Wright said at a ceremony for the signing of the economic agreements that President Donald Trump’s administration wanted to turn the Middle East from a region of conflict into a hub for trade and investment. Greater investment was the best route to stability, peace, and job creation across the region, Wright said. He praised al-Zaidi for choosing the United States as his first foreign destination, about 60 days after taking office, saying the decision underscored the importance of the US-Iraqi partnership in the next phase. Wright said expanding Iraq’s energy sector and increasing oil output would require US companies to provide investment, technology, and expertise. Their involvement would help improve efficiency and reduce Iraq’s dependence on some neighboring countries, he said. Iraqi Prime Minister Ali al-Zaidi, center, attends the US Iraq Business Summit at the US Chamber of Commerce, Friday, July 17, 2026, in Washington. (AP Photo/Rod Lamkey, Jr.) US oil deals in Iraq Alongside the Iraqi-Syrian pipeline agreement, US oil producer ConocoPhillips said it had agreed to acquire a 42% stake in BP’s giant Kirkuk oilfields complex in Iraq. ConocoPhillips said the deal was among several contracts signed during the Iraqi prime minister’s visit to the US. The project holds reserves of more than 3 billion barrels and includes future exploration opportunities. Financial terms were not disclosed, though estimates put the deal’s value at about $400 million. The agreement was among the major oil deals cited by Trump during al-Zaidi’s White House visit, as Baghdad pushes to attract fresh foreign investment into its energy sector.
