Iraq is accelerating plans to reopen a defunct 850-kilometer crude oil pipeline to the Syrian port of Baniyas, a move aimed at diversifying export routes and safeguarding energy security following recent regional instability.

The project gained renewed urgency after the June 2025 conflict between Israel and Iran raised fears of a blockade at the Strait of Hormuz, a critical chokepoint for global oil transit. 

By reviving the Mediterranean link, Baghdad aims to reduce its heavy reliance on Persian Gulf shipping lanes, which could be vulnerable to the simmering geopolitical tensions in the Middle East.

Oil Minister Hayan Abdul Ghani met with ministry officials and local energy firms last week to fast-track technical and logistical assessments. 

Abdul Ghani described the pipeline as a "major strategic venture" essential for maintaining flexibility amidst international challenges.

"The minister directed the concerned authorities to expedite their specialized studies and submit final recommendations," the ministry said in a statement. 

The goal is to ensure the project aligns with Iraq’s long-term energy goals, which include boosting production capacity by 40% to more than 6 million barrels per day (bpd).

Iraq, OPEC’s second-largest producer, currently pumps over 4 million bpd. While it holds 145 billion barrels of proven reserves, its export potential has often been hampered by aging infrastructure and geopolitical rifts.

The pipeline, which dates back to the 1950s, has a turbulent history, from being disabled during the 1956 Suez Crisis to being shuttered for nearly two decades due to political friction between Baghdad and Damascus. 

Adding to the setbacks, the pipeline was finally crippled during the 2003 U.S. invasion.

Recent reports from the Shafaq news agency indicate that Iraq and Syria have commissioned a Turkish firm to conduct a feasibility study. 

While full rehabilitation to a capacity of 700,000 bpd could cost an estimated $8 billion, officials are reportedly considering a partial restart at a lower capacity to reduce initial costs.

The push follows the September reopening of the Kirkuk-Ceyhan pipeline to Turkey, signalling Iraq's broader effort to mend regional ties and secure multiple outlets for its vast crude resources.