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)
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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.



Will Ahmadinejad Return to the Political Scene in Iran?

Iranian former President Mahmoud Ahmadinejad. (AFP)
Iranian former President Mahmoud Ahmadinejad. (AFP)
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Will Ahmadinejad Return to the Political Scene in Iran?

Iranian former President Mahmoud Ahmadinejad. (AFP)
Iranian former President Mahmoud Ahmadinejad. (AFP)

A report by The Atlantic said the strike that hit a region close to Iranian former President Mahmoud Ahmadinejad’s residence in the first days of the war on Iran has returned to the spotlight a still controversial political figure even though he left office for over a decade ago.

On the first day of the Iran war, the assassination of Supreme Leader Ali Khamenei overshadowed news of a strike near Ahmadinejad’s home, said the report.

“Many who remembered his term in office - marked by Holocaust denial, atom-bomb fetishism, and shoving revolutionary ideology down the throats of a country already weary of it - celebrated his reported assassination,” it added. He was president from 2005 to 2013.

“Among those who have followed Ahmadinejad’s post-presidential career, however, his targeting was more of an enigma. Since leaving office, Ahmadinejad has harshly criticized the Iranian government, and as a result, Iran’s Guardian Council has formally excluded him from running for president,” said the report.

For more than a decade, he has been known more as a regime opponent than as a supporter. “I don’t understand why Israel would want to kill him in the first place,” Meir Javedanfar, who co-wrote a biography of Ahmadinejad, told The Atlantic. “Perhaps to settle scores? It makes no sense.”

Contrary to early reports, Ahmadinejad is alive, his associates revealed, requesting anonymity. “The circumstances of his survival may prove significant as the war drags on. Whatever the intent, Ahmadinejad’s associates say the strike was in effect a jailbreak operation that freed the former president from regime control.”

“Long before the war, the government had posted a small number of bodyguards near Ahmadinejad, nominally to protect a prominent citizen but also to keep tabs on him. The regime has never been sure what to do with him,” said the report.

About a month ago, after the January protests, his freedom of movement was further reduced, his phones confiscated, and the contingent of bodyguards increased from single digits to about 50. The bodyguards were based a few hundred meters from Ahmadinejad’s residence itself, at the entrance to a cul-de-sac in Narmak, in northeast Tehran. They established a checkpoint to monitor the houses and high school on that street.

“A February 28 strike hit not the residence, but the security forces nearby. In the ensuing mayhem, Ahmadinejad and his family evidently escaped their home and went underground. The government believed he had died, and his death was announced by official channels, as well as the reformist daily Sharq.”

“When rumors arose that Ahmadinejad had escaped, regime elements immediately suspected that he had been spirited away to take part in a coup,” said The Atlantic. “Ahmadinejad’s only public statement since the attack has been a brief eulogy for the supreme leader, calculated to show that Ahmadinejad was alive and to dispel speculation that he had declared himself an enemy of the state. His location is unknown to the government.”

In 2018, former Defense Minister Hussein Dehghan likened Ahmadinejad to “the door of the mosque, which can’t be burned or thrown away” without torching the mosque itself.

“Arresting Ahmadinejad could unsettle the regime,” Javedanfar said. “He knows a hell of a lot about it.”

“Ahmadinejad’s fans say that he has popular support, and that any postwar government will want him around to lend that support. If the current regime survives, it will need all the legitimacy it can get. If it does not, the United States might need someone with intimate - if outdated - knowledge of the Iranian state to be involved with what comes next. Ahmadinejad could still be useful,” the report said.


How Have US Presidents Tapped Strategic Petroleum Reserves During War?

GILLETT, TEXAS - MARCH 11: Pump jacks operate in a field on March 11, 2026 in Gillett, Texas. Brandon Bell/Getty Images/AFP
GILLETT, TEXAS - MARCH 11: Pump jacks operate in a field on March 11, 2026 in Gillett, Texas. Brandon Bell/Getty Images/AFP
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How Have US Presidents Tapped Strategic Petroleum Reserves During War?

GILLETT, TEXAS - MARCH 11: Pump jacks operate in a field on March 11, 2026 in Gillett, Texas. Brandon Bell/Getty Images/AFP
GILLETT, TEXAS - MARCH 11: Pump jacks operate in a field on March 11, 2026 in Gillett, Texas. Brandon Bell/Getty Images/AFP

The US plans to release 172 million barrels of oil from its Strategic Petroleum Reserve, more than 40% of a wider release coordinated with allies, to help dampen prices spiked by supply disruptions from the US-Israeli war on Iran.

The US sale, announced late on Wednesday, is part of a 400-million-barrel release by members of the International Energy Agency. The US Department of Energy said the US drawdown would begin next week and take about four months.

The SPR currently holds about 415 million barrels, most of which is high sulfur, or sour ‌crude, that US ‌refineries are geared to process. The crude is ‌held ⁠underground in hollowed-out salt ⁠caverns on the coasts of Texas and Louisiana that can store 714 million barrels.

Here is how US presidents have tapped the SPR in times of war:

RUSSIA INVADES UKRAINE

In March 2022, the month after Russia invaded Ukraine, former President Joe Biden ordered the release of 180 million barrels over six months - the largest sale ever from the emergency stash. Biden, ⁠and later President Donald Trump, slowly bought some oil ‌to replenish the reserves, but little ‌has been added back as Congress needs to provide more money to ‌do so.

LIBYA CIVIL WAR

In ⁠June 2011, former ⁠President Barack Obama ordered the release of 30 million barrels of oil from the reserve to offset disruptions to global markets from civil war in oil producer Libya. That sale was coordinated with the Paris-based IEA, resulting in an additional 30-million-barrel release from other member countries.

OPERATION DESERT STORM

In 1990-1991, after the Iraqi invasion of Kuwait, former President George H. W. Bush sold about 21 million barrels in two phases. In October 1990, the US ordered a 3.9-million-barrel test sale. In January 1991, after US and allied warplanes began attacks against Baghdad and other military targets in OPEC-member Iraq as part of Operation Desert Storm, Bush ordered the sale of 34 million barrels, of which half was sold.


How Trump and his Advisers Miscalculated Iran’s Response to War

Karoline Leavitt, the White House press secretary, said the administration “had a strong game plan” before the war broke out. Doug Mills/The New York Times
Karoline Leavitt, the White House press secretary, said the administration “had a strong game plan” before the war broke out. Doug Mills/The New York Times
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How Trump and his Advisers Miscalculated Iran’s Response to War

Karoline Leavitt, the White House press secretary, said the administration “had a strong game plan” before the war broke out. Doug Mills/The New York Times
Karoline Leavitt, the White House press secretary, said the administration “had a strong game plan” before the war broke out. Doug Mills/The New York Times

By Mark Mazzetti, Tyler Pager, Edward Wong

On Feb. 18, as President Trump weighed whether to launch military attacks on Iran, Chris Wright, the energy secretary, told an interviewer he was not concerned that the looming war might disrupt oil supplies in the Middle East and wreak havoc in energy markets.

Even during the Israeli and US strikes against Iran last June, Wright said, there had been little disruption in the markets. “Oil prices blipped up and then went back down,” he said.

Some of Trump’s other advisers shared similar views in private, dismissing warnings that — the second time around — Iran might wage economic warfare by closing shipping lanes carrying roughly 20% of the world’s oil supply.

The extent of that miscalculation was laid bare in recent days, as Iran threatened to fire at commercial oil tankers transiting the Strait of Hormuz, the strategic choke point through which all ships must pass on their way out of the Arabian Gulf.

In response to the Iranian threats, commercial shipping has come to a standstill in the Gulf, oil prices have spiked, and the Trump administration has scrambled to find ways to tamp down an economic crisis that has triggered higher gasoline prices for Americans.

The episode is emblematic of how much Trump and his advisers misjudged how Iran would respond to a conflict that the government in Tehran sees as an existential threat.

Iran has responded far more aggressively than it did during last June’s 12-day war, firing barrages of missiles and drones at US military bases, cities in Arab nations across the Middle East, and on Israeli population centers.

US officials have had to adjust plans on the fly, from hastily ordering the evacuation of embassies to developing policy proposals to reduce gas prices.

After Trump administration officials gave a closed-door briefing to lawmakers on Tuesday, Senator Christopher S. Murphy, Democrat of Connecticut, said on social media that the administration had no plan for the Strait of Hormuz and did “not know how to get it safely back open.”

Inside the administration, some officials are growing pessimistic about the lack of a clear strategy to finish the war. But they have been careful not to express that directly to the president, who has repeatedly declared that the military operation is a complete success.

Trump has laid out maximalist goals like insisting that Iran name a leader who will submit to him, while Secretary of State Marco Rubio and Defense Secretary Pete Hegseth have described narrower and more tactical objectives that could provide an off-ramp in the near term.

Karoline Leavitt, the White House press secretary, said the administration “had a strong game plan” before the war broke out, and vowed that oil prices would drop after it ended.

“The purposeful disruption in the oil market by the Iranian regime is short term, and necessary for the long-term gain of wiping out these terrorists and the threat they pose to America and the world,” she said in a statement.

This article is based on interviews with a dozen US officials, who asked for anonymity to discuss private conversations.

‘Show Some Guts’

Hegseth acknowledged on Tuesday that Iran’s ferocious response against its neighbors caught the Pentagon somewhat off guard. But he insisted that Iran’s actions were backfiring.

“I can’t say that we anticipated necessarily that’s exactly how they would react, but we knew it was a possibility,” Hegseth said at a Pentagon news conference. “I think it was a demonstration of the desperation of the regime.”

Trump has displayed growing frustration over how the war is disrupting the oil supply, telling Fox News that oil tanker crews should “show some guts” and sail through the Strait of Hormuz.

Some military advisers did warn before the war that Iran could launch an aggressive campaign in response, and would view the US-Israeli attack as a threat to its existence. But other advisers remained confident that killing Iran’s senior leadership would lead to more pragmatic leaders taking over who might bring an end to the war.

When Trump was briefed about risks that oil prices could rise in the event of war, he acknowledged the possibility but downplayed it as a short-term concern that should not overshadow the mission to decapitate the Iranian regime. He directed Wright and Treasury Secretary Scott Bessent to work on developing options for a potential spike in prices.

But the president did not speak publicly about these options — including political risk insurance backed by the US government, and the potential of US Navy escorts — until more than 48 hours after the conflict started. The escorts have not yet taken place.

As the conflict has roiled global markets, Republicans in Washington have grown concerned about rising oil prices damaging their efforts to sell an economic agenda to voters ahead of the midterm elections.

Trump, both publicly and privately, has been arguing that Venezuelan oil could help solve any shocks coming from the Iran war. The administration announced on Tuesday a new refinery in Texas that officials said could help increase oil supply, ensuring that Iran does not cause any long-term damage to oil markets.

A Potential Off-Ramp

Trump has said both that the war could go on for more than a month and that it was “very complete, pretty much.” He also said the United States would “go forward more determined than ever.”

Rubio and Hegseth, however, appear to have coordinated their messaging for now on three discrete goals that they began laying out in public remarks on Monday and Tuesday.

“The goals of this mission are clear,” Rubio said at a State Department event on Monday before Trump held his own news conference. “It is to destroy the ability of this regime to launch missiles, both by destroying their missiles and their launchers; destroy the factories that make these missiles; and destroy their navy.”

The State Department even laid out the three goals in bullet-point fashion, and highlighted a video clip of Rubio stating them on an official social media account.

The presentation by Rubio, who is also the White House national security adviser, appeared to be setting the stage for the president to bring an end to the war sooner rather than later. In his news conference, Trump boasted of how the US military had already destroyed Iran’s ballistic missile capability and its navy. But he also warned of even more aggressive action if Iranian leaders tried to cut off the world’s energy supply.

Matthew Pottinger, who was a deputy national security adviser in the first Trump administration, said in an interview that Mr. Trump had indicated he could decide to pursue ambitions war goals that would take weeks at least.

“In his press conference, I could hear him circling back to a rationale for fighting a bit longer given that the regime is still signaling it won’t be deterred and is still trying to control the Strait of Hormuz,” said Pottinger, now the chair of the China program at the Foundation for Defense of Democracies, a group that advocates a close US partnership with Israel and confrontation with Iran.

“He doesn’t want to have to fight a ‘sequel’ war,” Pottinger added.

The search for pathways out of the war has gained urgency since the weekend, as global oil prices surge and as the United States burns through costly munitions.

Pentagon officials said in recent closed-door briefings on Capitol Hill that the military used up $5.6 billion of munitions in the first two days of the war alone, according to three congressional officials. That is a far larger amount and munitions burn rate than had been publicly disclosed. The Washington Post reported on the figure on Monday.

Iranian officials have remained defiant, saying they will use their leverage over the world’s oil supply to force the United States and Israel to blink.

“Strait of Hormuz will either be a Strait of peace and prosperity for all,” Ali Larijani, Iran’s top national security official, said in a social media post on Tuesday. “Or it will be a Strait of defeat and suffering for warmongers.”

The New York Times