Syrian and Iraqi state oil company executives signed two memoranda of understanding in Washington on July 17 to revive the Kirkuk-Baniyas pipeline, aiming to provide an alternative export route for Iraqi oil amid disruptions to Gulf trade routes caused by the Iran conflict. The pipeline, which runs from Iraq’s Kirkuk fields to Syria’s Mediterranean port of Baniyas, has an estimated capacity of 300,000 barrels per day and was originally built in the 1950s before ceasing operations in 1982 due to political tensions.

Recent energy investments underscore Syria’s broader recovery: in May 2026, Chevron and Qatar’s UCC Holdings agreed with the Syrian Petroleum Company on offshore gas and oil exploration, while in June the Syrian Petroleum Company partnered with Conoco Phillips and Novaterra Energy to revive central Syrian gas fields. The United States has begun importing fuel oil of Iraqi origin shipped through Syria for the first time, signaling the new Mediterranean export route’s operational start.

Beyond oil, Syria is stabilizing its economy and security. A graduation ceremony on July 23 saw 1,000 new air force cadets complete training, and the country has restored airports, with at least 12 airlines resuming flights to Damascus and Aleppo since‑the Assad regime in late 2024, Syria has also held IMF meeting with IMF officials to discuss economic recovery.

Analysts say reviving the Kirkuk‑Baniyas pipeline will reshape the region’s energy map, strengthen Syria and Iraq’s strategic positions, gradually reduce Turkey’s influence, and diminish the importance of the Strait of Hormuz for Iran and China. The deal follows Iraqi Prime Minister Ali al‑Zaidi’s Washington visit, during which BP and Conoco Phillips agreed to invest in redeveloping Iraq’s Kirkuk oil fields.