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Syria Gains Oil Transit Revenues as Hormuz Shuts

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The closure of the blocked Strait of Hormuz after the latest Middle‑East clash has forced oil exporters to reroute shipments inland. With maritime lanes cut, traders turned to overland corridors that skim Syria’s Mediterranean coast. Damascus, long isolated by sanctions, suddenly found its highways and ports in demand, sparking a nascent logistics boom. Exporters quickly adapted to the new reality.

By April, convoys of Iraqi trucks were spotted hauling crude to the Baniyas refinery, a facility that once processed modest volumes for domestic use. The makeshift route now moves tens of thousands of barrels daily, feeding European refineries that face tighter supply. Freight rates have risen 15‑20 percent, inflating revenues for Syrian transport firms and port operators.

Revenue gains are feeding a broader economic revival. Local contractors secure contracts to upgrade road networks, while Syrian banks report a surge in foreign‑currency deposits tied to oil trade fees. Yet the upside is fragile; any reopening of the Hormuz corridor would slash overland volumes overnight, leaving Damascus vulnerable to another shock. For now, Syria’s temporary role as a land bridge is reshaping regional energy logistics.