Iraq imports petrol through Syria in another US-backed step towards closer ties

Iraq has begun importing petrol through Syria, a development that strengthens ties between the two nations amid challenges in their trade routes, according to an Oil Ministry official. This move comes as Iraq faces disruptions to its fuel supply through the Strait of Hormuz and as the United States seeks to deepen diplomatic relations with both countries.

Iraq is now utilizing Syria as an overland trade route to both export fuel oil and import petrol. In April, Syria emerged as the primary conduit for Iraqi fuel oil exports, partially making up for the loss of shipments due to the ongoing conflict in Iran. Since then, approximately 2.1 million tonnes of Iraqi fuel oil have been transported by truck to Syria's Baniyas refinery.

The first shipment of imported petrol, amounting to 32,000 tonnes, is currently being unloaded at the Baniyas refinery and will be distributed to Iraq via trucks. Subsequently, seventy-seven trucks carrying the fuel departed from Baniyas for the Iraqi border, as reported by Reuters. Additionally, a ship carrying more petrol destined for Iraq is currently en route to Baniyas.

An Iraqi Oil Ministry official disclosed that a transit agreement between Iraq's oil marketing company, Somo, and Qatar's UCC Holding has been finalized. UCC Holding, owned by Syrian-Qatari businessmen who have strong connections in Washington, will facilitate the transfer of the petrol.

A Syrian official revealed that discussions on augmenting fuel oil shipments through Syria were held during a meeting in New York between Syrian President Ahmad Al Shara and Iraqi Prime Minister Ali Al Zaidi. US special envoy Thomas Barrack also participated in the meeting.

However, Syria seeks Iraq to conduct security screenings of tankers prior to their crossing into the country. The current political landscape in Syria, following the departure of Bashar Al Assad and the rise of post-Assad governance, contrasts with certain segments of Iraq's political system that maintain close ties to Iran. These ideological differences, coupled with the influence of Iranian-backed militias among Iraqi militias, have historically supported Assad's rule during the 2011 uprising.

The US has been actively steering transportation routes to its advantage in Iraq and Syria since the initiation of the Iran War in February. In July, Iraq and Syria agreed to restore and activate an oil pipeline between Iraq's northern oil hub of Kirkuk and Syria's port of Baniyas, involving Qatar's UCC Holding.