Baghdad (IraqiNews.com) – A large convoy of tanker trucks carrying Iraqi fuel oil entered Syria on Monday through the Rabia-Yarubiyah border crossing en route to worldwide markets.
According to Shafaq News, the convoy is the largest among Iraqi fuel oil convoys entering Syria, with over 150 tanker trucks heading to the Mediterranean coastal city of Baniyas before heading to global markets.
Syria’s General Authority for Borders and Customs said in early May that the movement of Iraqi tanker trucks through the border crossing is part of organized transit operations to the port of Baniyas.
According to reports, this move follows an agreement between the Iraqi and Syrian governments to export Iraqi oil through Syria to global markets via the Mediterranean Sea.
The step comes as Baghdad seeks alternative export routes to the Strait of Hormuz due to ongoing challenges with maritime shipping.
Although the land route had been abandoned for decades, the end of the Syrian civil war and interruptions created by regional warfare have made it the most viable alternative presently, despite the associated higher costs.
In late March, more than 60 tanker trucks carrying Iraqi oil have begun passing the al-Waleed border crossing, a strategic checkpoint between Iraq and Syria, after over a decade of closure.
Four Iraqi oil suppliers were granted term contracts following the United States and Israel’s airstrikes on Iran in February, which led to the closure of the Strait of Hormuz, according to Reuters.
According to the State Organization for Marketing of Oil (SOMO), two dealers would ship 720,000 metric tons of fuel oil from Iraq’s northern, central, and southern refineries over three months, at discounts ranging from $160 to $170 per ton.
A third merchant will export 401,000 tons at a discount of around $160 per ton, while the fourth obtained a lesser 90,000-ton deal at a discount of around $155 per ton.