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

Iraq has initiated the import of petrol through Syria, marking a significant strengthening of its relationship with Damascus, according to an Oil Ministry official. This development coincides with Iraq's struggle to overcome supply disruptions in its petroleum trade through the Strait of Hormuz, as well as the US's efforts to deepen bilateral ties between the two nations.

Iraq is employing an overland trade route via Syria to both export fuel oil and import petrol. In April, Syria emerged as the key conduit for Iraqi fuel oil exports, partly mitigating the impact of the Iran war-induced shipping disruptions. Since then, an estimated 2.1 million tonnes of Iraqi fuel oil have traversed by truck to Syria's Baniyas.

The first shipment of imported petrol, totaling 32,000 tonnes, is currently being unloaded at Baniyas refinery for transport to Iraq via trucks. Seventy-seven trucks carrying the fuel then departed Baniyas for the Iraqi border, as reported by Reuters. An additional vessel loaded with petrol destined for Iraq is en route to Baniyas.

An Iraqi Oil Ministry official revealed that a transit agreement for the petrol has been established between Iraq's oil marketing agency, Somo, and Qatar's UCC Holding, owned by Syrian-Qatari businessmen with strong connections to Washington. A Syrian official disclosed that discussions on enhancing fuel oil transit through Syria took place during a recent meeting in New York between Syrian President Ahmad Al Shara and Iraqi Prime Minister Ali Al Zaidi, attended by US special envoy Thomas Barrack.

However, Syria seeks Iraq to scrutinize ships for potential security threats prior to their crossing the border. The post-Bashar Al Assad governance in Syria and certain segments of Iraq's political landscape, which have close ties to Iran, exhibit contrasting ideologies. Iraqi militias backed by Iran were instrumental in shielding Al Assad's rule following the 2011 popular uprising.

The US has actively maneuvered trade routes to its advantage in Iraq and Syria since the onset of the Iran war in February. Under US guidance, Iraq and Syria signed a deal in July to revitalize and modernize an oil pipeline connecting Iraq's northern oil hub of Kirkuk with Syria's Baniyas port. This initiative also involves Qatar's UCC Holding.