On Friday, July 17th, 2026, Iraq signed preliminary agreements with Western oil companies, including Chevron, aimed at reviving a crude oil pipeline running from Iraq's oil-rich Kirkuk region to Syria's Baniyas port. These deals were formalized during a United States-Iraq business summit held at the US Chamber of Commerce in Washington.

The initiative seeks to reestablish an energy supply route that allows Iraq to export oil without relying on the Strait of Hormuz, a strategic chokepoint whose transit has been heavily disrupted due to ongoing US-Israel conflicts with Iran.

Iraq’s state news agency reported that Chevron, a major US energy company, will undertake the pipeline rehabilitation project. According to the US State Department, once restored, the pipeline will initially have a transport capacity of 2 million barrels of crude oil per day.

US ambassador to Turkiye, Tom Barrack, commented that these agreements would lead to a program "that will make the Strait of Hormuz an afterthought." Additionally, Chevron signed two other agreements with Iraq focused on increasing oil production, as stated by Jake Spiering, Chevron’s president of corporate business development.

These developments come as Baghdad aims to reduce its dependence on the Strait of Hormuz amid regional instability and disruptions.

Sources