Iraq and Syria Revive Kirkuk-Baniyas Pipeline to Bypass Hormuz Strait

Iraq and Syria have signed an agreement to rehabilitate the Kirkuk-Baniyas oil pipeline, creating an alternative export route that bypasses the Strait of Hormuz. The development comes amid ongoing disruptions in the strait due to regional tensions.

The pipeline, inactive since 2003, would have an initial capacity of 2 million barrels per day once operational. The project involves a US-led international consortium, including Chevron, with reconstruction costs estimated at over $4.5 billion.

This strategic move aligns with Iraq's efforts to reduce reliance on the heavily disrupted Hormuz chokepoint and supports broader US strategies to limit Iran's influence over global oil flows.

Markets suggest the pipeline restoration could alleviate supply concerns and impact WTI Crude Oil pricing. The project is projected to take 36 months to complete.