US receives first Iraqi fuel oil cargoes via Syria as Iraq diversifies export routes
The US has started importing Iraqi fuel oil transported through Syria for the first time, highlighting Iraq’s efforts to diversify its export routes amid ongoing geopolitical tensions that have disrupted shipping through the Strait of Hormuz.
Citing shipping data from Kpler, a Reuters report showed that three Aframax tankers loaded with Iraqi fuel oil at Syria’s Baniyas port between June and July. These tankers were headed to the US Gulf Coast, showing that Iraq is increasingly using land transport to access international markets after months of disruption to Gulf shipping.
The first tanker, On Passion, left Baniyas on 17 June carrying about 716,600 barrels of fuel oil. Some of this cargo was unloaded in the Bahamas in mid-July, and the rest is set to arrive in Texas later this month. Two more tankers, Nissos Christina and Green Warrior, carrying 288,500 and 414,400 barrels respectively, are expected to deliver shipments to the US Gulf Coast in the third week of August.
Land routes keep Iraqi oil on the move
Iraqi fuel oil is trucked across the Syrian border before being loaded onto tankers at Baniyas. According to some reports, about 900 tanker trucks have reportedly been arriving at the terminal each day since this new export route opened in early May, enabling Iraq to keep moving refined products.
The US had not directly imported Iraqi fuel oil since March, according to Kpler. Traditionally, US fuel oil imports come from suppliers like Mexico, Algeria, and Iraq, making the Syrian export route a new addition to established trade flows.
“It looks like a push and a pull: Baniyas has been increasing fuel oil exports recently, while the US Gulf is trying to fill the supply gap left by Mideast Gulf flows,” Matt Smith, director of commodity research at Kpler, told Reuters.
This trade route is part of a larger strategy by Baghdad to diversify exports beyond Hormuz. Earlier this month, Iraq and Syria signed an agreement to restore the Kirkuk-Baniyas pipeline, inactive since 2003. Once operational, the renewed pipeline could let Iraq move up to 700,000 barrels per day.
The project received support during Iraqi Prime Minister Ali Al-Zaidi’s visit to Washington mid-June. The US reaffirmed its support for reviving the Kirkuk-Baniyas pipeline as part of broader efforts to strengthen commercial ties with Iraq and improve alternative energy export infrastructure.
Revatilising the Kirkuk-Baniyas Pipeline
In a joint statement on 15 June, Prime Minister Al-Zaidi and US Special Presidential Envoy to Iraq Tom Barrack said they aim to “advance a memorandum of understanding with TI Capital to rehabilitate the Kirkuk-Baniyas Pipeline as a vital oil export route.”
Although crude oil and naphtha exports through Syria have not started yet, Iraqi and Syrian officials have stated they plan to keep using the Mediterranean route even if shipping through Hormuz returns to normal. This strategy aims to reduce dependence on a single export route, a vulnerability revealed by recent regional conflicts.
Syria has quickly become a major fuel oil export hub in the Middle East, according to a Bloomberg report. The country made up more than a quarter of regional shipments in June as thousands of trucks delivered Iraqi products to Baniyas. Iraq is also sending smaller volumes through Jordan and is exploring additional pipeline projects to strengthen export resilience.
For Iraq, which relies heavily on oil revenues, increasing use of Syria as an export gateway marks a significant change in regional energy logistics. Mediterranean routes are likely to play a more important role in Iraq’s long-term export strategy.
