Iraq opens overland export route through Syria, aims to export 50,000 barrels of crude oil per day starting in July; route will be retained as part of diversification strategy even after reopening of Hormuz.

(1) Iraq is preparing to export crude oil and naphtha via Syrian ports. An official from Iraq's Ministry of Oil stated that starting in July, the target is to export 50,000 barrels of crude oil per day through Syria, with the first batch of oil tanker transports expected to commence in early July. Even if navigation resumes in the Hormuz Strait, this route will be maintained as part of the government's approved strategy to diversify export channels. (2) During the conflict, Iraq has exported fuel oil through the Mediterranean port of Baniyas to avoid disruptions on major Gulf shipping lanes. Syria plans to open two additional unloading zones and other facilities in Baniyas within a week to handle Iraqi crude oil and naphtha. Currently, Baniyas unloads about 900 oil tankers per day. Iraq's State Oil Marketing Organization (SOMO) will establish an office in Baniyas. (3) This land route faces many challenges: highways have been damaged by years of war, and oil tanker collision incidents have occurred in the past. Syria generates revenue by charging transit fees. A spokesperson for Iraq's Ministry of Oil stated that discussions and cooperation are ongoing with Syria to expand exports through its western neighbor. Syria is also working to repair war-damaged pipelines to replace the oil tanker route; the Iraq-Syria pipeline has a transport capacity of up to 300,000 barrels per day.