Trump envoy kept financial ties to firm behind $15 billion Hormuz-bypass oil pipeline plan

Thomas Barrack, a US envoy in the Middle East, backed a firm run by his business associate to participate in an oil pipeline project from Iraq to Syria, potentially breaching federal ethics guidelines. In July, Iraq and Syria agreed to work with a consortium including the company, Californian investment group TI Capital, Chevron, and Qatar's UCC Holding to study and potentially rehabilitate the pipeline, which would bypass the Hormuz Strait.

Barrack, who serves as US presidential envoy to Iraq and Syria and Ambassador to Turkey, has a long-standing business relationship with TI Capital and its founder, Ziad Ghandour. During the 2025 confirmation hearings, he held a financial interest of up to 20% in a San Francisco real estate venture managed by TI Capital and led by Ghandour.

In meetings with Iraqi and Syrian officials, Barrack pushed for Ghandour's firm to be part of the project, according to two sources familiar with the discussions. On June 16, a month before the consortium agreement, Barrack and Iraqi Prime Minister Ali al-Zaidi released a joint statement praising Iraq's decision to sign a memorandum of understanding with TI Capital for the pipeline rehabilitation, but did not mention Chevron or UCC.

While there is no evidence Barrack stands to profit, his connection to Ghandour raises serious ethical concerns under regulations that prohibit officials from participating in matters where personal or financial ties could compromise their impartiality. Ethics experts and former government officials agree that Barrack should have completely recused himself from the pipeline project, stating the appearance of a conflict of interest is the primary issue.

Barrack has not filed a conflict-of-interest waiver with the US Office of Government Ethics regarding his ties to the company, as he intended to retain his profit-sharing stake in the San Francisco real estate venture.