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.



Early US Intelligence Report Suggests US Strikes Only Set Back Iran’s Nuclear Program by Months

A woman walks past a residential building that was hit in an Israeli strike covered with a big Iranian flag, in Tehran on June 25, 2025. (AFP)
A woman walks past a residential building that was hit in an Israeli strike covered with a big Iranian flag, in Tehran on June 25, 2025. (AFP)
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Early US Intelligence Report Suggests US Strikes Only Set Back Iran’s Nuclear Program by Months

A woman walks past a residential building that was hit in an Israeli strike covered with a big Iranian flag, in Tehran on June 25, 2025. (AFP)
A woman walks past a residential building that was hit in an Israeli strike covered with a big Iranian flag, in Tehran on June 25, 2025. (AFP)

A US intelligence report suggests that Iran’s nuclear program has been set back only a few months after US strikes and was not “completely and fully obliterated” as President Donald Trump has said, according to two people familiar with the early assessment.

The report issued by the Defense Intelligence Agency on Monday contradicts statements from Trump and Israeli Prime Minister Benjamin Netanyahu about the status of Iran's nuclear facilities. According to the people, the report found that while the Sunday strikes at the Fordo, Natanz and Isfahan nuclear sites did significant damage, the facilities were not totally destroyed. The people were not authorized to address the matter publicly and spoke on condition of anonymity.

The White House rejected the DIA assessment, calling it “flat-out wrong.” On Wednesday, Director of National Intelligence Tulsi Gabbard said in a post on X that “New intelligence confirms” what Trump has stated: “Iran’s nuclear facilities have been destroyed. If the Iranians chose to rebuild, they would have to rebuild all three facilities (Natanz, Fordo, Esfahan) entirely, which would likely take years to do.”

Gabbard’s office declined to respond to questions about the details of the new intelligence, or whether it would be declassified and released publicly.

The office of the director of national intelligence coordinates the work of the nation’s 18 intelligence agencies, including the DIA, which is the intelligence arm of the Defense Department, responsible for producing intelligence on foreign militaries and the capabilities of adversaries.

The DIA did not respond to requests for comment.

The US has held out hope of restarting negotiations with Iran to convince it to give up its nuclear program entirely, but some experts fear that the US strikes and the potential of Iran retaining some of its capabilities could push Tehran toward developing a functioning weapon.

The assessment also suggests that at least some of Iran’s highly enriched uranium, necessary for creating a nuclear weapon, was moved out of multiple sites before the US strikes and survived, and it found that Iran’s centrifuges, which are required to further enrich uranium to weapons-grade levels, are largely intact, according to the people.

At the deeply buried Fordo uranium enrichment plant, where US B-2 stealth bombers dropped several 30,000-pound bunker-buster bombs, the entrance collapsed and infrastructure was damaged, but the underground infrastructure was not destroyed, the assessment found. The people said that intelligence officials had warned of such an outcome in previous assessments ahead of the strike on Fordo.

The White House pushes back Trump defended his characterization of the strike's impact.

“It was obliteration, and you’ll see that,” Trump told reporters while attending the NATO summit in the Netherlands. He said the intelligence was “very inconclusive” and described media outlets as “scum” for reporting on it.

Defense Secretary Pete Hegseth, who was also at the NATO summit, said there would be an investigation into how the intelligence assessment leaked and dismissed it as “preliminary” and “low confidence.”

Secretary of State Marco Rubio said, “These leakers are professional stabbers.”

The intelligence assessment was first reported by CNN on Tuesday.

The Israel Atomic Energy Commission said its assessment was that the US and Israeli strikes have “set back Iran’s ability to develop nuclear weapons by many years.” It did not give evidence to back up its claim.

Trump special envoy Steve Witkoff, who said he has read damage assessment reports from US intelligence and other nations, reiterated Tuesday that the strikes had deprived Iran of the ability to develop a weapon and called it outrageous that the US assessment was shared with reporters.

“It’s treasonous so it ought to be investigated,” Witkoff said on Fox News Channel.

Trump has said in comments and posts on social media in recent days, including Tuesday, that the strike left the sites in Iran “totally destroyed” and that Iran will never rebuild its nuclear facilities.

Netanyahu said Tuesday in a televised statement: “For dozens of years I promised you that Iran would not have nuclear weapons and indeed ... we brought to ruin Iran’s nuclear program." He said the US joining Israel was “historic” and thanked Trump.

Outside experts had suspected Iran had likely already hidden the core components of its nuclear program as it stared down the possibility that American bunker-buster bombs could be used on its nuclear sites.

Bulldozers and trucks visible in satellite imagery taken just days before the strikes have fueled speculation among experts that Iran may have transferred its half-ton stockpile of enriched uranium to an unknown location. And the incomplete destruction of the nuclear sites could still leave the country with the capacity to spin up weapons-grade uranium and develop a bomb.

Iran has maintained that its nuclear program is peaceful, but it has enriched significant quantities of uranium beyond the levels required for any civilian use. The US and others assessed prior to the US strikes that Iran’s theocratic leadership had not yet ordered the country to pursue an operational nuclear weapon, but the head of the International Atomic Energy Agency has repeatedly warned that Iran has enough enriched uranium to make several nuclear bombs should it choose to do so.

Vice President JD Vance said in a Monday interview on Fox News Channel that even if Iran is still in control of its stockpile of 408.6 kilograms (900.8 pounds) of enriched uranium, which is just short of weapons-grade, the US has cut off Iran's ability to convert it to a nuclear weapon.

“If they have 60% enriched uranium, but they don’t have the ability to enrich it to 90%, and, further, they don’t have the ability to convert that to a nuclear weapon, that is mission success. That is the obliteration of their nuclear program, which is why the president, I think, rightly is using that term,” Vance said.

Approximately 42 kilograms of 60% enriched uranium is theoretically enough to produce one atomic bomb if enriched further to 90%, according to the UN nuclear watchdog.

What experts say Iranian Foreign Minister Abbas Araghchi informed UN nuclear watchdog chief Rafael Grossi on June 13 — the day Israel launched its military campaign against Iran — that Tehran would “adopt special measures to protect our nuclear equipment and materials.”

American satellite imagery and analysis firm Maxar Technologies said its satellites photographed trucks and bulldozers at the Fordo site beginning on June 19, three days before the Americans struck.

Subsequent imagery “revealed that the tunnel entrances into the underground complex had been sealed off with dirt prior to the US airstrikes,” said Stephen Wood, senior director at Maxar. “We believe that some of the trucks seen on 19 June were carrying dirt to be used as part of that operation.”

Some experts say those trucks could also have been used to move out Iran’s enriched uranium stockpile.

“It is plausible that Iran moved the material enriched to 60% out of Fordo and loaded it on a truck,” said Eric Brewer, a former US intelligence analyst and now deputy vice president at the Nuclear Threat Initiative.

Iran could also have moved other equipment, including centrifuges, he said, noting that while enriched uranium, which is stored in fortified canisters, is relatively easy to transport, delicate centrifuges are more challenging to move without inflicting damage.

Apart from its enriched uranium stockpile, over the past four years Iran has produced the centrifuges key to enrichment without oversight from the UN nuclear watchdog.

Iran also announced on June 12 that it has built and will activate a third nuclear enrichment facility. IAEA chief Grossi said the facility was located in Isfahan, a place where Iran has several other nuclear sites. After being bombarded by both the Israelis and the Americans, it is unclear if, or how quickly, Isfahan’s facilities, including tunnels, could become operational.

But given all of the equipment and material likely still under Iran’s control, this offers Tehran “a pretty solid foundation for a reconstituted covert program and for getting a bomb,” Brewer said.

Kelsey Davenport, director for nonproliferation policy at the Arms Control Association, a nonpartisan policy center, said that “if Iran had already diverted its centrifuges,” it can “build a covert enrichment facility with a small footprint and inject the 60% gas into those centrifuges and quickly enrich to weapons grade levels.”

But Brewer also underlined that if Iran launched a covert nuclear program, it would do so at a disadvantage, having lost to Israeli and American strikes vital equipment and personnel that are crucial for turning the enriched uranium into a functional nuclear weapon.