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Iraq sees an opportunity to revive pipelines and gradually increase oil exports through Syria, despite limited political alignment between Baghdad and Damascus, according to two Iraqi officials.

Relations between the two countries remain strained since Hayat Tahrir Al Sham ousted the Assad regime and took control, with Iraq sceptical due to its extremist past and the heavy toll such groups have taken on the country.

But with the Strait of Hormuz effectively blocked, Iraq, which relies on oil for about 90 per cent of its budget, has struck a surprise deal with Damascus to export crude overland, in a pragmatic move to keep revenue flowing.

“The use of Syrian territory, despite the absence of strong political alignment between Baghdad and Damascus, reflects a pragmatic, necessity-driven approach. It is a functional co-ordination focused on economic continuity,” one official with knowledge of Baghdad’s strategic planning told The National.

The country turned to Syria to export fuel oil by land tankers this week, but the total volume was not disclosed. The Syrian Petroleum Company announced that 299 oil-carrying lorries loaded with Iraqi fuel began entering Syrian territory late on Wednesday through the Al Tanf border crossing.

Baghdad said the amount would gradually increase to boost oil revenue and support the country’s economy.

A month into the Iran war, Iraq has considered various alternative and immediate export channels as its economy remains heavily dependent on oil revenue. The crude is mostly exported through the Strait of Hormuz, where Iran has the upper hand over shipment traffic during the war.

The Damascus deal comes after Iraq last month resumed oil exports from its Kirkuk fields to Turkey’s Ceyhan port through ⁠a pipeline following a deal with the Kurdistan Regional Government.

The Syrian route has been viewed as part of a “broader, short-term crisis management strategy, highlighting the urgent need for Iraq to diversify its export infrastructure and reduce reliance on a single maritime corridor,” the official explained.

Iraq, which produced about 4.35 million barrels per day and exported about 3.4 million bpd before the war, has seen a sharp drop in volumes amid the Iran war.

The current tanker route through Syria is limited in scale, said the official, adding that it is logistically constrained and economically inefficient compared to pipeline or maritime exports.

However, it could “serve as a precursor to more structured arrangements in the future, including the potential revival of pipeline infrastructure connecting Iraq to the Mediterranean”.

Another official said the Syria route represents a step towards diversifying Iraq’s export infrastructure. Currently, the Iraqi government is exploring “all available options to strengthen its export routes and mitigate the negative impacts of the Strait of Hormuz closure,” he stated. “There is still a long way to go”.

Both officials spoke on condition of anonymity given the sensitivity of the matter.

Iraqi crude will be shipped from Mediterranean facilities such as Baniyas and Tartus to Europe and elsewhere. The route is slower and more costly than pipelines, but provides a workable stopgap.

The issue started to emerge when Iranian attacks on oil tankers in Iraq’s southern Basra forced authorities to halt operations at all the country’s oil terminals in mid-March, as the deadly war dragged Iraq into the equation.

Part of the suspension of oil was the Majnoon oilfield, which was attacked twice. The country also shut down oil production at Rumaila, its largest oilfield.

Syria stands to gain on three fronts. Financially, it can earn transit fees, and port charges at Baniyas and Tartus.

Strategically, positioning itself as a land bridge between Iraq and the Mediterranean restores part of its prewar role in regional energy logistics, increasing its relevance at a time when key routes are disrupted.

Politically, facilitating Iraqi exports offers Damascus a channel to re-engage with Arab neighbours and external partners, projecting itself as a pragmatic actor focused on economic co-operation despite lingering tensions.

“This development has the potential to enhance revenue stability for Iraq and provide economic opportunities for Syria as a transit country,” affirmed an Iraqi official.