Iraq is opening a land export channel, bypassing the blockade of the Strait of Hormuz caused by conflicts in Iran, to transport large quantities of fuel oil to export terminals via Syria. This adjustment reflects the profound impact of changes in the Middle East geopolitical landscape on the regional energy supply chain.
According to Reuters, Iraq's State Oil Marketing Company (SOMO) has signed contracts to export approximately 650,000 metric tons of fuel oil per month via Syria by land between April and June.
The Iraqi Ministry of Oil announced on Wednesday that this move aims to support the national economy, increase fiscal revenue, and stated that the transportation volume will gradually increase to expand export capacity.
Syria's General Company for Oil Transport confirmed that the first batch of Iraqi fuel oil has arrived at the Baniyas refinery storage tanks via the Al-Tanf border crossing, and unloading operations are proceeding as planned. Meanwhile, Iraq has already resumed crude oil exports via the Turkish port of Ceyhan, with multiple export channels being advanced concurrently.
<h2>Conflict Blockade Forces Route Shift</h2>
In February, the United States and Israel carried out airstrikes against Iran, leading to the closure of the Strait of Hormuz.
According to Reuters, citing sources, although this land route has not been used for decades, the end of the Syrian civil war and disruptions to maritime shipping caused by regional conflicts have made it the most viable alternative option, despite higher transportation costs.
Before the conflict, Iraq primarily exported fuel oil through the Al-Huzayba port on the coast of the Arabian Gulf in the south, reaching global markets by sea. The closure of the Strait of Hormuz cut off this traditional route, forcing Iraqi oil companies to seek alternative export solutions.
Iraqi energy officials stated that production from the country's largest southern oil fields has declined by nearly 80% from previous levels to about 800,000 barrels per day. Tanker saturation and transportation difficulties have also led Iraq and other oil-producing countries to compress production.
<h2>Rapid Expansion of Land Corridors</h2>
Adnan al-Kubaisi, a member of the Anbar Provincial Council, revealed on Tuesday that over 60 Iraqi oil tankers have begun entering Syria through the Al-Walid border crossing, a strategic port that has been reopened after more than a decade of closure.
He expects the number of transit oil tankers to increase to 600-700 in the future.
Mujahid Mardhi Al-Dulaimi, the head of the Al-Walid sub-district, stated that over 150 oil tankers are currently waiting to enter Syria, with an expected daily transit volume of about 500 vehicles.
Syria's General Company for Oil Transport stated that this transportation is part of an &#34;integrated supply plan.&#34; Upon arrival, the cargo will be transferred to specialized oil tankers at the port of Baniyas for shipment to its final destination, and the company noted the efficiency of its infrastructure and operational teams.
<h2>Contract Details and Discount Structure</h2>
According to Reuters, SOMO awarded regular contracts to four Iraqi oil suppliers against the backdrop of the February conflict in Iran and the resulting export disruptions.
Two of the traders will export a total of 720,000 metric tons of fuel oil from Iraq's northern, central, and southern refineries over three months, with discounts ranging from $160 to $170 per ton. The third trader will export 401,000 tons at a discount of approximately $160 per ton. The fourth has secured a smaller contract of 90,000 tons at a discount of about $155 per ton.
The significant discounts reflect the high costs of land transportation and Iraq's urgent need to deplete its inventory under the current limited export channel environment.

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Iraq's State Oil Marketing Company (SOMO) has signed contracts to export approximately 650,000 metric tons of fuel oil per month via Syria by land between April and June. The Iraqi Ministry of Oil stated that the volume of transportation will gradually increase to expand export capacity

- Iraq has established a land route to bypass the Hormuz Strait blockade caused by conflicts with Iran, facilitating the export of fuel oil through Syria.  
- The Iraqi National Oil Marketing Company plans to transport approximately 650,000 metric tons of fuel monthly from April to June to support the economy and increase revenue.  
- As traditional maritime routes have been disrupted, the new supply chain reflects shifts in the geopolitical landscape of the Middle East, with significant implications for regional energy supply.

Report: Iraq Begins Exporting Oil via Syria