Syria-Iraq Oil Pipeline Revival Challenges Israel’s Regional Energy Role

Iraq and Syria have signed a memorandum of understanding to rehabilitate the historic oil pipeline connecting Kirkuk in northern Iraq to the Syrian port of Baniyas on the Mediterranean coast. The 800-kilometer pipeline, inactive since the 2003 U.S. invasion of Iraq, aims to bypass the Strait of Hormuz, which Iran has intermittently closed amid its conflicts with the U.S. and Israel. The project has garnered enthusiastic support from the U.S. State Department, which called it of "bilateral and regional strategic importance." American oil giant Chevron is reportedly in advanced talks to join an international consortium, alongside a Qatari holding company and an American investment firm, to lead the pipeline’s restoration.

In recent months, Iraq has already begun transporting oil by truck into Syria, where it is loaded onto tankers at Baniyas for export primarily to Europe, with recent shipments reportedly destined for the United States. This emerging route strengthens Syria’s economic and political position under President Bashar al-Assad’s regime by generating revenue and enhancing its role as an energy transit hub.

Israeli analysts, including Vita Avrahmov from the Institute for National Security Studies, warn that while the project undermines Iran’s leverage over regional oil exports, it simultaneously weakens Israel’s potential to become a central energy corridor between the Middle East and Europe. The revived pipeline reduces the need for alternative routes through Israel, such as proposals involving the Eilat-Ashkelon pipeline and connections to Gulf energy networks. This development comes amid stalled normalization talks between Israel and Saudi Arabia, further dimming Israel’s prospects as a regional energy hub.

The pipeline initiative is part of a broader regional effort by Gulf states like Saudi Arabia and the UAE to diversify export routes around the Strait of Hormuz, including new pipelines through the Red Sea and Gulf of Oman. As more countries succeed in creating alternative energy corridors, Israel risks losing its strategic position as a transit point for Middle Eastern energy exports.