The Syrian Oil: Time for New Approach?

US - Russian Struggle Opens Opportunity for 'War lords'

US forces conduct training with the "Syrian Democratic Forces" in Hasaka countryside on September 7 (EPA)
US forces conduct training with the "Syrian Democratic Forces" in Hasaka countryside on September 7 (EPA)
TT

The Syrian Oil: Time for New Approach?

US forces conduct training with the "Syrian Democratic Forces" in Hasaka countryside on September 7 (EPA)
US forces conduct training with the "Syrian Democratic Forces" in Hasaka countryside on September 7 (EPA)

With the war in Syria now in its twelfth year and with the US-Russian conflict still ongoing to control the oil sector and its potential, local belligerents and regional opponents have found in oil a rare point of consensus to cooperate and pick clean the country’s wealth and revenues.

Oil production from fields and facilities mainly located in north-eastern Syria was about 400,000 barrels per day prior to the conflict. After the eruption of the conflict in 2011, various warring forces, including opposition factions and ISIS, successively seized control of much of this invaluable oil wealth. Western sanctions placed on the oil sector have caused foreign oil companies to leave the country.

The Syrian Democratic Forces (SDF), a US-backed coalition, currently controls one-quarter of Syria’s territory, including the area east of the Euphrates. This means that the SDF now dominates 90 percent of the oil and over 50 percent of the gas fields, as well as the infrastructure owned by foreign companies, according to legitimate contracts signed with the Damascus government, including Gulfsands Petroleum, Total, and Shell. Oil wells and facilities were cordoned off and “protected” by the US-led coalition forces and SDF.

On the other hand, Damascus announced that the oil sector’s losses since the beginning of the crisis amounted to USD 91.5 billion. Oil Minister Bassam Tohme revealed that the daily oil production is 89,000 barrels, mainly in Kurdish-controlled areas. Tohme describes this oil as being “stolen” from the Syrian people.

International Conflict

After the Russian military intervention in late 2015, Damascus signed contracts with Russian companies to invest in the oil and gas sectors in Syria and its territorial waters. It also contracted with Evro Polis, the Yevgeny Prigozhin-linked company financing Wagner mercenaries, to protect oil and gas facilities and liberate them from ISIS in exchange for 25 percent of their proceeds. This included Evro Polis taking control of Suncor’s large Ebla gas development near Palmyra – an operation that led to many casualties.

This agreement was the cover under which the Wagner paramilitary group operated. Wagner was estimated to have as many as 2,500 men in Syria in 2018. They participated in the fighting in Syria or took part in training and preparation camps in Russia. Some of them have been relocated to Libya and now to Ukraine.

In reality, the agreement between Evro Polis and Damascus only covered areas under Damascus control. In early 2018, Wagner mercenaries launched an assault on the Conoco gas plant in the eastern Euphrates, a position of the SDF, but they were hammered by US artillery and airstrikes that killed about 200 mercenaries.

In late 2019, former US President Donald Trump made a shock announcement that American troops would withdraw from the area around Syria’s border with Turkiye, east of the Euphrates, giving Turkiye the green light to invade northern Syria and putting the SDF, Washington’s allies, under new pressure. On October 6, 2019, Republican Senator Lindsey Graham, together with some US and European officials, persuaded President Trump to keep 900 members of the US military there to protect the oil. Trump later said that "a small number of soldiers will remain in the areas that contain oil," stressing that "we have ensured the security and protection of oil."

In July 2020, Washington announced that SDF Commander Mazloum Abdi informed the Trump administration of the signing of an agreement with the American company Delta Crescent Energy to invest in oil after obtaining a waiver from the Treasury Department from the sanctions placed on Syria. Then-Secretary of State Mike Pompeo said the deal was intended to "modernize oil.”

The situation embarrassed the US Department of Defense which issued conflicting statements. It initially stated that "Syrian oil is for the Syrian people and we remain committed to the unity and territorial integrity of Syria.” It further emphasized that “the US government does not own, control, or manage the oil resources in Syria. The populations in areas liberated from ISIS make their own decisions on local governance.” Former US Defense Secretary Mark Esper announced that "we are now taking measures to strengthen our position in Deir el-Zour to deny ISIS access to the oil fields.” The Pentagon confirmed sending troops and armored vehicles to protect oil fields.

The US-Russian conflict is still ongoing. An opposition leader said that high-ranking Russian officers had repeatedly informed the SDF leaders to allow Russian companies that signed contracts with Damascus to work in the oil fields east of the Euphrates, but the Kurdish officials responded that this required the approval of the US allies that co-control the oil fields.

A stand-off has ensued, with undesirable consequences.

Illegal but all Too Comfortable

The ongoing Russian-US conflict has been aggravated as a result of the war in Ukraine and the stagnation of the military situation in Syria, especially with the absence of a prospect for a political solution while economic and humanitarian needs of the Syrian people escalate. This means that oil has emerged as a factor of tacit cooperation between illegitimate Syrian and foreign belligerents to share the revenues of about 89,000 barrels per day.

According to expert estimates, the Autonomous Administration of North and East Syria (AANES) receives around USD 16 per barrel and a further USD 15 goes to the Syrian government. The remaining amount, which could amount up to USD 50 per barrel, is ‘lost’ and ends up in the hands of these war profiteers. The AANES uses part of the production locally, while the mediators and the war profiteers transport another part to government areas (constituting two-thirds of Syria’s territory) for refining or keeping. It is well reported that oil is also smuggled into Iraqi Kurdistan, either for local use or for smuggling into Turkiye. Oil is sold at very low prices and the fields and surrounding environment now suffer considerable damage.

Officials talk about networks operating in the shadows to smuggle oil and its derivatives between the east of the Euphrates, controlled by the SDF whose linchpin is the Kurdish People's Protection Units (YPG), and the Euphrates Shield areas or other enclaves controlled by the Syrian opposition factions and the Turkish army. It is noteworthy that the military forces in these two regions are involved in daily fighting, strikes, and raids, and exchange accusations of disloyalty, treason, and terrorism.

The same applies to the path crossed by oil tanks from the eastern Euphrates to oil refineries in the areas controlled by the Syrian government. The latter accuses the dominant forces in the east of the country of being traitors and agents of the American occupation. In the same vein, an informed source said that officials in the Kurdistan Workers' Party (PKK) advised leaders of the SDF to coordinate with Damascus regarding the sale of oil internally and regionally.

The cooperation between the belligerents extends beyond the borders. Reports indicate that oil is smuggled into Iraqi Kurdistan and some Turkish regions, with the involvement of mediators and individuals close to the decision-makers there, although political and military differences are ongoing between the decision-makers in Qamishli and Erbil. In this regard, an informed Western official said, "most likely, the decision-makers in these areas are not in a hurry to reach a political solution that would impede the flow of money into their pockets. It is most likely that the war profiteers in the local areas of influence and the neighboring countries do not want the war to end.”

An Alternative Approach -

When President Joe Biden assumed office, his administration announced sanction exemptions that allowed some targeted investments, (although this excluded the oil industry), in Eastern Euphrates. However, it decided not to extend the sanction waiver granted to Delta Crescent Energy for many reasons, mainly the objection of foreign companies holding sovereignty rights in the oil fields. For instance, Gulfsands Petroleum (“Gulfsands”) signed a contract with Damascus in 2003 to invest in and develop Block 26 east of the Euphrates. According to its 2021 annual report, unauthorized production from Block 26 since early 2017 has reached about 20,000 barrels per day, meaning that around 35 million barrels have been produced from the block since then.

Meanwhile, London-based Gulfsands is calling for a "win-win" humanitarian initiative that would enable it and other international oil companies to regain control of their assets. Rather than flow to the sanctioned entities and other unauthorized intermediaries , the Gulfsands initiative would see revenues from oil sales transferred to a UN-controlled fund. John Bell, the managing director of Gulfsands, said a new approach was needed to alleviate the enormous suffering in Syria. He added, "Syria needs billions of dollars that can only be generated with oil and gas,” and described the plans as "a gain for the Kurds, Damascus, and the Syrian people." He also posited that a share of oil proceeds would go to a UN-controlled humanitarian account whose payments are fully in line with the international sanctions placed on Syria.

That might seem simple, but analysts have linked the initiative with the Oil-for-Food program enforced in Iraq before the US invasion in 2003. Bell acknowledges that lessons need to be learned from that ill-fated program as he proposes the initiative to the international stakeholders. This is a particularly timely initiative as discussions continue regarding the extension of providing international aid across borders, including the amendment to include the financing of early recovery projects and other humanitarian and health affairs.



Why Greenland Is Strategically Important to Arctic Security

Houses covered by snow are seen on the coast of a sea inlet of Nuuk, Greenland, on March 7, 2025. (AP Photo/Evgeniy Maloletka, File)
Houses covered by snow are seen on the coast of a sea inlet of Nuuk, Greenland, on March 7, 2025. (AP Photo/Evgeniy Maloletka, File)
TT

Why Greenland Is Strategically Important to Arctic Security

Houses covered by snow are seen on the coast of a sea inlet of Nuuk, Greenland, on March 7, 2025. (AP Photo/Evgeniy Maloletka, File)
Houses covered by snow are seen on the coast of a sea inlet of Nuuk, Greenland, on March 7, 2025. (AP Photo/Evgeniy Maloletka, File)

Location, location, location: Greenland’s position above the Arctic Circle makes the world’s largest island a key part of security strategy.

Increasing international tensions, global warming and the changing world economy have put Greenland at the heart of the debate over global trade and security, and US President Donald Trump wants to make sure his country controls the mineral-rich island that guards the Arctic and North Atlantic approaches to North America.

Greenland is a self-governing territory of Denmark, a longtime US ally that has rejected Trump’s overtures. Greenland’s own government also opposes US designs on the island, saying the people of Greenland will decide their own future.

The island, 80% of which lies above the Arctic Circle, is home to about 56,000 mostly Inuit people who until now have been largely ignored by the rest of the world.

Here’s why Greenland is strategically important to Arctic security:

Greenland’s location is key

Greenland sits off the northeastern coast of Canada, with more than two-thirds of its territory lying within the Arctic Circle. That has made it crucial to the defense of North America since World War II, when the US occupied Greenland to ensure it didn’t fall into the hands of Nazi Germany and to protect crucial North Atlantic shipping lanes.

Following the Cold War, the Arctic was largely an area of international cooperation. But climate change is thinning the Arctic ice, promising to create a northwest passage for international trade and reigniting competition with Russia, China and other countries over access to the region’s mineral resources.

Security threats

In 2018, China declared itself a “near-Arctic state” in an effort to gain more influence in the region. China has also announced plans to build a “Polar Silk Road” as part of its global Belt and Road Initiative, which has created economic links with countries around the world.

Then US Secretary of State Mike Pompeo rejected China’s move, saying: “Do we want the Arctic Ocean to transform into a new South China Sea, fraught with militarization and competing territorial claims?”

Meanwhile, Russia has sought to assert its influence over wide areas of the Arctic in competition with the US, Canada, Denmark and Norway. Moscow has also sought to boost its military presence in the polar region, home to its Northern Fleet and a site where the Soviet Union tested nuclear weapons. Russian military officials have said that the site is ready for resuming the tests, if necessary.

Russia's military has been restoring old Soviet infrastructure in the Arctic and building new facilities. Since 2014, the Russian military has opened several military bases in the Arctic and worked on reconstructing airfields.

European leaders’ concerns have been heightened since Russia launched a war in Ukraine on Feb. 24, 2022.

Last year, Russian President Vladimir Putin noted that Moscow is worried about NATO’s activities in the Arctic and will respond by strengthening the capability of its armed forces there. But he said that Moscow was holding the door open to broader international cooperation in the region.

US military presence

The US Department of Defense operates the remote Pituffik Space Base in northwestern Greenland, which was built after the US and Denmark signed the Defense of Greenland Treaty in 1951. It supports missile warning, missile defense and space surveillance operations for the US and NATO.

Greenland also guards part of what is known as the GIUK (Greenland, Iceland, United Kingdom) Gap, where NATO monitors Russian naval movements in the North Atlantic.

Thomas Crosbie, an associate professor of military operations at the Royal Danish Defense College, said that an American takeover wouldn't improve upon Washington’s current security strategy.

“The United States will gain no advantage if its flag is flying in Nuuk (Greenland's capital) versus the Greenlandic flag,” he told The Associated Press. “There’s no benefits to them because they already enjoy all of the advantages they want.

"If there’s any specific security access that they want to improve American security, they’ll be given it as a matter of course, as a trusted ally. So this has nothing to do with improving national security for the United States.”

Denmark’s parliament approved a bill last June to allow US military bases on Danish soil. It widened a previous military agreement, made in 2023 with the Biden administration, where US troops had broad access to Danish air bases in the Scandinavian country.

Danish Foreign Minister Lars Løkke Rasmussen, in a response to lawmakers’ questions, wrote over the summer that Denmark would be able to terminate the agreement if the US tries to annex all or part of Greenland.

Danish armed forces in Greenland

Denmark is moving to strengthen its military presence around Greenland and in the wider North Atlantic. Last year, the government announced a roughly 14.6 billion-kroner ($2.3 billion) agreement with parties including the governments of Greenland and the Faroe Islands, another self-governing territory of Denmark, to “improve capabilities for surveillance and maintaining sovereignty in the region.”

The plan includes three new Arctic naval vessels, two additional long-range surveillance drones and satellite capacity.

Denmark’s Joint Arctic Command is headquartered in Nuuk, and tasked with the “surveillance, assertion of sovereignty and military defense of Greenland and the Faroe Islands,” according to its website. It has smaller satellite stations across the island.

The Sirius Dog Sled Patrol, an elite Danish naval unit that conducts long-range reconnaissance and enforces Danish sovereignty in the Arctic wilderness, is also stationed in Greenland.

Mineral wealth

Greenland is also a rich source of the so-called rare earth minerals that are a key component of cellphones, computers, batteries and other high-tech gadgets that are expected to power the world’s economy in the coming decades.

That has attracted the interest of the US and other Western powers as they try to ease China’s dominance of the market for these critical minerals.

Development of Greenland’s mineral resources is challenging because of the island’s harsh climate, while strict environmental controls have proved an additional hurdle for potential investors.


Protest-Hit Iran Warily Watches the US After its Raid on Venezuela

Iranians protest a 22-year-old woman Mahsa Amini's death after she was detained by the morality police, in Tehran, Sept. 20, 2022, in this photo taken by an individual not employed by the Associated Press and obtained by the AP outside Iran. (AP Photo/ File)
Iranians protest a 22-year-old woman Mahsa Amini's death after she was detained by the morality police, in Tehran, Sept. 20, 2022, in this photo taken by an individual not employed by the Associated Press and obtained by the AP outside Iran. (AP Photo/ File)
TT

Protest-Hit Iran Warily Watches the US After its Raid on Venezuela

Iranians protest a 22-year-old woman Mahsa Amini's death after she was detained by the morality police, in Tehran, Sept. 20, 2022, in this photo taken by an individual not employed by the Associated Press and obtained by the AP outside Iran. (AP Photo/ File)
Iranians protest a 22-year-old woman Mahsa Amini's death after she was detained by the morality police, in Tehran, Sept. 20, 2022, in this photo taken by an individual not employed by the Associated Press and obtained by the AP outside Iran. (AP Photo/ File)

Iran faces a new round of protests challenging the country's theocracy, but it seems like the only thing people there want to talk about is half a world away: Venezuela.

Since the US military seized Venezuelan President Nicolas Maduro, a longtime ally of Tehran, over the weekend, Iranian state media headlines and officials have condemned the operation. In the streets and even in some official conversations, however, there's a growing question over whether a similar mission could target the country's top officials including the supreme leader, 86-year-old Ali Khamenei.

The paranoia feeds into wider worries among Iranians. Many fear that close US ally Israel will target Iran again as it did during the 12-day war it launched against Tehran in June. Israel killed a slew of top military officials and nuclear scientists, and the US bombed Iranian nuclear enrichment sites. Khamenei is believed to have gone into hiding for his protection.

“God bless our leader, we should be careful too," said Saeed Seyyedi, a 57-year-old teacher in Tehran, worried the US could act as it did in Venezuela.

"The US has always been after plots against Iran, especially when issues like oil, Israel are part of the case. In addition, it can be complicated when it is mixed with the Russia-Ukraine war, the Lebanese (group) Hezbollah and drug accusations.”

The US long has accused the Iranian-backed Hezbollah of running drug-smuggling operations to fund its operations, including in Latin America, which the group denies.

‘Please pray’

Immediately after Maduro’s seizure, an analyst on Iranian state television claimed, without offering evidence, that the US and Israel had plans during the war last year to kidnap Iranian officials with a team of dual-national Iranians. Even for conspiracy-minded Iranian television, airing such a claim is unusual.

Then on Sunday night, the prominent cleric Mohammad Ali Javedan warned an audience at prayers in Tehran University that Khamenei's life was in danger.

“Someone said he had a bad dream that the leader’s life is in danger," Javedan said, without elaborating. "Please pray.”

However, Iran is roughly twice the size of Venezuela and has what analysts consider to be a much stronger military and robust security forces. The memory of Operation Eagle Claw, a failed US special forces mission to rescue hostages held after the 1979 US Embassy takeover in Tehran, also haunts Washington.

Then there's the political situation in Iran, with its theocracy protected by hard-liners within the paramilitary Revolutionary Guard, who answer only to Khamenei.

They could launch assassinations, cyberattacks and assaults on shipping in the Middle East, warned Farzin Nadimi, senior fellow at the Washington Institute for Near East Policy who studies Iran’s military.

And crucially, Iran also still has fissile nuclear material.

“In the grand-strategy scheme of things, they need to think about the day after,” Nadimi said of anyone considering a Venezuela-style raid. “Iran is a much more complex political situation. They have to calculate the costs and benefits.”

Not just the Iranians

Others wonder what part of the world the US might take interest in next, while critics have warned about setting a dangerous precedent.

“The regime in Iran should pay close attention to what is happening in Venezuela,” Israeli opposition leader Yair Lapid posted on social media on Saturday.

Israeli Prime Minister Benjamin Netanyahu did not directly link Maduro's detention to Iran but acknowledged the protests sweeping Tehran and other cities, saying: “It is very possible that we are standing at the moment when the Iranian people are taking their fate into their own hands.”

Hours before the US action in Venezuela, US President Donald Trump warned Iran that if Tehran “violently kills peaceful protesters” the US “will come to their rescue.”

On Monday, Iranian Foreign Ministry spokesman Esmail Baghaei denounced the comments by Trump and Netanyahu as an “incitement to violence, terrorism and killing.”

US Rep. Marjorie Taylor Greene, a Republican who had been close to Trump but resigned Monday after a falling-out with the president, directly linked the Venezuela operation to Iran.

“The next obvious observation is that by removing Maduro this is a clear move for control over Venezuelan oil supplies that will ensure stability for the next obvious regime change war in Iran," Greene wrote on social media.

‘Make Iran Great Again’

US Sen. Lindsey Graham, a Republican, put on a “Make Iran Great Again” hat during a Sunday segment on Fox News. He later posted an image showing him and Trump smiling after the president autographed a similar-looking hat.

“I pray and hope that 2026 will be the year that we make Iran great again," Graham said.


Iran at a Critical Crossroads Testing the Survival of its Regime

Burning debris lies in the middle of a street during protests in Hamedan, western Iran, Jan. 1, 2026. (AFP/Getty Images)
Burning debris lies in the middle of a street during protests in Hamedan, western Iran, Jan. 1, 2026. (AFP/Getty Images)
TT

Iran at a Critical Crossroads Testing the Survival of its Regime

Burning debris lies in the middle of a street during protests in Hamedan, western Iran, Jan. 1, 2026. (AFP/Getty Images)
Burning debris lies in the middle of a street during protests in Hamedan, western Iran, Jan. 1, 2026. (AFP/Getty Images)

Iran is confronting one of the most consequential junctures since the founding of the republic in 1979. The pressures bearing down on the system are no longer confined to economic sanctions or familiar forms of external coercion, but now cut to the heart of the governing formula itself: how to ensure the regime’s survival without accelerating the very forces that threaten to undermine it.

At the center of this moment lies a stark existential dilemma. A permissive response to internal unrest risks allowing protests to spread and harden into a protracted campaign of political attrition, while a sweeping security crackdown would heighten external dangers, at a time of mounting international hostility and unprecedented US warnings.

Caught between these two paths, Tehran finds its room for maneuver shrinking to levels it has rarely faced before.

Passing protests or structural shift?

The evolution of the current protests raises a central question about their nature: are they a containable social wave, or a deeper expression of a shift in public mood? The spread of demonstrations to small and medium-sized cities, and the widening of their social base, reflect an advanced level of discontent, even if it has not yet reached the threshold of a comprehensive explosion.

Farzin Nadimi, a senior Iran analyst at the Washington Institute for Near East Policy, argues that this wave differs from previous ones.

He told Asharq Al-Awsat that the latest protests, unlike earlier waves led by university students or low-income workers in major cities, are now driven by young people in smaller towns and supported by university students nationwide.

He described them as “more entrenched and widespread,” though not yet as large as some previous protests, noting the absence of government employees and oil workers, alongside a strong female presence once again.

This assessment aligns with the reading of Michael Rubin, a scholar at the American Enterprise Institute, who pointed to three key differences defining this wave: the nature of the participating forces, the symbolism of its launch from Tehran’s bazaar, and the impact of Israeli strikes that have punctured the aura surrounding Iran.

By contrast, Michael O’Hanlon, a senior fellow at the Brookings Institution, cautions against overestimating the street’s ability to bring about rapid change, noting that the Iranian system is highly organized and does not hesitate to use violence to control society.

‘Political fuel’

Iran’s economic crisis is no longer a technical issue that can be separated from politics. The collapse of the currency, the erosion of purchasing power, and declining trust in institutions have turned the economy into a direct driver of protest.

With each new round of pressure or sanctions, the sense deepens that the system is incapable of delivering real solutions without making political concessions.

Alex Vatanka, a Senior Fellow at the Middle East Institute in Washington, argues that what is unfolding goes beyond anger over prices or living conditions.

He told Asharq Al-Awsat that the protests reflect a deeper shift in public opinion, in which opposition is no longer directed at specific policies but at the model of governance itself. This shift, he said, confronts the system with a difficult question: can the economy be saved without rethinking the structure of power?

The security establishment: cohesion or fatigue?

Security institutions, from the Revolutionary Guards and their Basij mobilization arm to the intelligence services, form the backbone of the system’s ability to endure. Historically, these institutions have been the primary guarantor of internal stability, but mounting pressures now raise questions about their moral and ideological cohesion.

Rubin said that cracks are widening, pointing to rumors that Tehran has turned to deploying forces from Iraq’s Popular Mobilization Forces and Afghanistan’s Fatemiyoun Brigade due to declining confidence in some Revolutionary Guard units’ willingness to carry out orders.

Vatanka, for his part, acknowledged that these institutions remain cohesive for now, but warned that this cohesion is under growing strain from economic and social exhaustion, which over time could erode morale and produce partial fractures, even if open defections remain unlikely in the foreseeable future.

From deterrence to breaking taboos

If internal challenges are pressing on the structure of power, the external environment multiplies the risks. US-Israeli escalation, coupled with the waning weight of regional allies, places Iran before a radically different strategic landscape.

Threats by US President Donald Trump to support Iranian protesters signal a qualitative shift in US rhetoric, in which the focus is no longer confined to the nuclear program, but now includes Iran’s internal dynamics as part of the pressure equation.

Nadimi said that the developments in Venezuela and the arrest of Nicolas Maduro as carrying troubling implications for Tehran, while stressing the differences between the two cases, arguing that Iran is larger and more complex, and that Washington does not believe its system can be easily overthrown without a clear internal alternative.

Vatanka, however, sees a significant psychological impact from that precedent, saying it has weakened the assumption that leaders are immune from personal targeting.

The regional network: asset or burden?

Israeli strikes in June that targeted military leaders and sovereign symbols inside Iran reflect a shift in Israel’s security doctrine, from containment to direct confrontation.

O’Hanlon said that this pattern, following events in Venezuela and attacks on figures linked to Iran’s nuclear program, has become more likely under Trump, reflecting a willingness to break taboos that once held.

At the same time, questions are resurfacing over the effectiveness of Iran’s regional network. According to Vatanka, these arms are no longer a real deterrent, but have become, given their rising costs, a strategic burden.

Rubin agreed, adding that they have drained the state treasury, although he does not rule out the system turning to them if the crisis intensifies on the domestic front.

Amid this complex entanglement between internal and external pressures, the Iranian system’s options are narrowing as never before.

Between those who see this weakness as an opportunity to rebalance the region and those who fear widespread chaos, the core question remains: Is Tehran facing a manageable crisis of governance or an existential crisis that could shape Iran and the region for decades to come?