Iraq is aggressively exploring alternative oil export routes, including the revival of dormant pipelines and the construction of new corridors, to protect its economy from rising geopolitical tensions in the Strait of Hormuz.

Mudher Mohammed Saleh, a senior finance advisor to the prime minister, said the shift is a strategic necessity. Iraq currently relies on the narrow waterway and its southern Basra terminals to reach global markets—primarily major buyers in China and India. 

Because crude oil sales account for roughly 90% of state revenue, any maritime disruption poses an existential threat to the nation’s treasury.

A central pillar of the diversification strategy is the long-proposed Iraq-Jordan pipeline. This project would link Iraqi oil fields to the Red Sea port of Aqaba, granting Baghdad a direct outlet to international markets that bypasses the Gulf entirely.

Saleh also noted that the government is revisiting the possibility of restoring flows through the Kirkuk-Ceyhan Pipeline. Restoring flows through this northern route to Turkey’s Mediterranean coast would significantly reduce reliance on southern sea lanes.

Officials are also weighing the resurrection of Saudi Arabian Links, including older export lines that once connected Iraq to Saudi ports on the Red Sea.

Beyond fixed infrastructure, Saleh highlighted a shift toward domestic processing. By building new refineries, Iraq aims to export high-value petroleum products rather than strictly raw crude.

While the advisor mentioned that a massive fleet of 20,000 tanker trucks could theoretically move 3 million barrels per day, he acknowledged the limitations of land-based transport. 

Logistics experts view trucking as a last resort, as it is far less cost-effective and carries higher operational risks than marine or pipeline transit.

Last week, Iraq suspended all crude oil exports via the Turkish port of Ceyhan as tensions in the region mounted amid escalating war between Iran, Israel, and the United States. 

Iraq has reportedly been accelerating plans to reopen a decades-old dormant oil pipeline, stretching 850 kilometres to the Syrian port of Baniyas, a move aimed at securing the country’s energy future amid rising geopolitical tension in the region. 

As regional volatility persists, Baghdad’s focus remains on "de-risking" its export map, pivoting toward the Mediterranean and the Red Sea with the hope of transforming from a land-locked producer into a flexible global energy hub.