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Impact of Hormuz Blockade on Iraqi Oil Flow
Comparison of daily oil production/export capacity before and after the crisis.
Primary Sources
From Hormuz to Baniyas: How Iraq Is Seeking New Oil Lifelines Through Syria
For the first time in decades, Iraq has turned to overland fuel exports through Syria, a move that underscores the scale of disruption hitting its traditional shipping routes as the U.S.-Israeli war on Iran intensifies, particularly around the Strait of Hormuz, where the shutdown has halted exports once estimated at 3.4 million barrels a day.The stoppage has raised fresh questions about whether Syria could emerge as a new outlet for Iraqi oil, especially as talks continue between the two countries to revive a pipeline linking Iraq to the Mediterranean port of Baniyas.A Costly but Necessary RouteOn March 31, 2026, the first convoy of Iraqi fuel shipments set off overland through Syria, reopening a route that had been dormant for years as restrictions on navigation through the Strait of Hormuz persist.According to Reuters, the end of Syria’s civil war, combined with the unprecedented disruption caused by the U.S.-Israeli War on Iran, has pushed Iraq toward what is now seen as the most viable option, despite higher operating costs compared with maritime transport.The State Organization for Marketing of Oil in Iraq (SOMO) has signed contracts to supply around 650,000 tons of fuel oil per month from April through June 2026, with shipments to be transported overland via Syrian territory.Until recently, Iraq relied heavily on seaborne exports through Gulf ports such as Khor al-Zubair to reach global markets. The latest developments, however, have forced Baghdad to seek urgent alternatives.Under normal conditions, Iraq produces more than 4 million barrels a day, most of it from southern fields that once pumped over 3 million barrels daily before the war on Iran. Output has since fallen sharply to around 800,000 barrels a day.SOMO documents show the shipments will be sold at steep discounts ranging from $155 to $170 per ton, including contracts for 720,000 tons of high sulfur fuel oil over three months, sourced from refineries across northern, central, and southern Iraq, alongside smaller deals, Reuters reported.Ahmad Qabji, the deputy head of the Syrian Petroleum Company (SPC), confirmed a bilateral agreement to move Iraqi oil through Syrian territory, with the initial phase relying on tanker trucks before a possible shift to maritime exports.Speaking to Kurdistan 24 on April 4, Qabji said Iraqi oil is currently being transported by tankers across the desert to Baniyas, where it is being stockpiled, with volumes potentially reaching up to 1 million barrels as oper...
Syria becomes alternative energy corridor for oil as Hormuz effectively blo
NewsFeedSyria is receiving hundreds of Iraqi oil trucks hauling crude overland to its Baniyas port as an alternative energy corridor to Europe, creating a costly but crucial workaround while the Strait of Hormuz is largely blocked by the US-Israeli war on Iran.Published On 2 May 2026
How viable is Syria as a trade route to bypass blocked Hormuz strait?
As disruption in the Strait of Hormuz pushes governments and businesses to seek alternative routes, Syria is re-emerging as a potential trade corridor, linking Iraq to the Mediterranean and the ...
How viable is Syria as a trade route to bypass blocked Hormuz strait ...
LONDON: As disruption in the Strait of Hormuz pushes governments and businesses to seek alternative routes, Syria is re-emerging as a potential trade corridor, linking Iraq to the Mediterranean and the Gulf to Europe. Syria's interim president, Ahmad Al-Sharaa, said earlier this month that the country's geography makes it a "safe corridor" and an "alternative route" for energy ...
