Iraq imports petrol via Syria's Baniyas port as Hormuz closure bites

Iraqi fuel trucks loaded petrol at Syria's Baniyas port on Tuesday as Iraq moved to meet rising energy demand while the Strait of Hormuz remains closed. The move comes as mediators work with Iran and the United States to end the war.

The closure of Hormuz has sent shock waves through the global economy, forcing countries to look for alternative routes and pushing up fuel prices. Before the war, about a fifth of the world's traded oil and gas passed through the narrow waterway.

Syria, under interim president Ahmad al-Sharaa, who ousted longtime leader Bashar Assad in December 2024, has used the situation to strengthen its economy by offering an alternative route through Baniyas port. Markets including the United States and Europe have been using the port.

Iraq has for months been exporting oil to foreign markets by trucking it through Baniyas as a way around the closure of Hormuz. Under a three-month agreement, Iraq has now started importing petrol through Syria, with the first shipment for Iraq arriving at the port on Thursday. Under the deal, the Qatar-based conglomerate UCC buys the petrol, while Syria handles transportation and receives transit fees. The shipments are then moved by land to Iraq through al-Tanf in southeastern Syria from the northwestern port.

Ahmed Qubbaji, deputy head of the state-run Syrian Petroleum Company, said on Tuesday that Syria was working to bring in 200 tankers a day to Iraq. "We are thinking of setting up pipelines from Iraq to Syria via the sea through other countries," he told The Associated Press. "So we are not looking at interim projects, but thinking strategically for the long term." Overall, the arrangement shows how Syria and Iraq are using Baniyas as an alternative energy route as the closure of Hormuz disrupts global fuel flows.