In a step reflecting a strategic shift in regional energy routes, Baghdad has officially begun exporting crude oil via Syria, in an effort to bypass the paralysis that has affected traditional maritime trade corridors. The move, which Damascus described as a return to its role as a “transit compass” and a vital platform for global energy, comes amid sweeping geopolitical shifts in the region that are imposing a new economic reality based on overland integration between the two countries.
The first convoys of Iraqi fuel tankers set off through the Al-Tanf–Al-Waleed border crossing, heading toward the Baniyas refinery on Syria’s Mediterranean coast, marking the effective launch of a new phase of economic cooperation. The Syrian Arab News Agency (SANA) reported that the cargo of 299 fuel tankers will later be loaded for export.
The Al-Tanf crossing had been closed since 2015, when ISIS took control of it. In 2016, US-backed forces established a military base in Al-Tanf. Syrian forces took control of the base last month, paving the way for the crossing to reopen.
"Transit Compass"
With the first convoys entering Syrian territory through the Al-Tanf–Al-Waleed crossing en route to Baniyas, Syrian Energy Minister Mohammed Al-Bashir wrote on X: “From the Syrian-Iraqi border to the maritime carriers in Baniyas... Syria is returning as a transit compass and a strategic export platform for global energy.” He said the step “enhances national interests and advances Arab economic integration toward broader horizons.”
The General Authority for Land and Sea Ports said the move represents “an important milestone in developing economic cooperation between the two countries by activating trade and energy routes, enhancing opportunities for economic integration, and supporting trade flows in the coming phase,” stressing its readiness to provide all necessary facilitation and ensure efficient procedures.
Mazen Alloush, director of public relations at the authority, announced Tuesday via Facebook the reopening of the Al-Tanf–Al-Waleed crossing, confirming the entry of the first Iraqi oil tanker convoys toward the Baniyas terminal.
In parallel, a delegation from the authority conducted a field tour to assess readiness at the Al-Yarubiyah–Rabia crossing ahead of plans to resume operations in early May, while also reviewing the status of the Semalka–Fishkhabour crossing as part of procedures to integrate it into the authority’s operational system. Passenger traffic has resumed at the Al-Bukamal–Al-Qaim crossing.
Alongside the reopening of Al-Waleed, Syrian government efforts are focused on activating Al-Yarubiyah–Rabia in early May and completing procedures at Semalka–Fishkhabour to strengthen the broader cross-border connectivity network.
For his part, the Iraqi subdistrict head of Al-Waleed, Mujahid Mardhi Al-Dulaimi, told the Iraqi News Agency (INA) that the crossing has entered a trial reopening phase with crude oil tankers beginning to move between Iraq and Syria. He said more than 150 tankers are currently waiting to enter Syrian territory, expecting daily traffic to reach at least 500 tankers.
Oil cooperation between Syria and Iraq has the backing of President Donald Trump’s administration. US Special Envoy to Syria Tom Barrack said last week at the Atlantic Council that Syria could be “the solution” to the energy crisis stemming from the situation in the Strait of Hormuz, highlighting the potential development of pipeline networks, including from Iraq.
"Syria a Vital Option"
The move gains added significance amid escalating regional tensions and intensifying confrontation between the United States and Israel on one side and Iran on the other, which has resulted in direct threats to navigation in the Strait of Hormuz, through which about 20 percent of global energy supplies pass.
In this context, economic expert Dr. Fadi Ayash said Iraq, as a major oil producer, has found in Syria a vital and available option to sustain export flows, especially given the difficulty of secure maritime exports. He said the current direction aims to raise tanker traffic to between 500 and 700 per day at a minimum.
Amid drone attacks and shelling targeting the Syrian side of the border since the outbreak of the unprecedented regional war- including a drone strike last Saturday launched from Iraq on the Al-Tanf base in southeastern Syria, questions arise about the sustainability of keeping crossings open and continuing Iraqi oil exports through Syrian territory under these security conditions.
Ayash said: “There is no doubt that Iraq is among the Gulf countries most affected by the current war, given that it is a major oil producer and exporter heavily dependent on export revenues. It therefore had to look for alternatives to sustain exports, and Syria was a viable option. However, sustainability depends on balancing financial and oil needs- especially with continued disruption in the Strait of Hormuz- against on-the-ground security challenges in active conflict zones.”
Iraq is seeking to increase exports through Syria to between 600 and 700 trucks per day, making it a vital and mutually agreed option. According to Ayash, this represents “a practical application of spatial economics as a temporary solution to sustain exports, allowing time and resources to revive the pipeline linking Iraq and Syria to the Baniyas oil terminal on the Mediterranean. Pipeline exports are more efficient, less costly, and more secure, particularly as border areas are subject to intermittent security tensions and shelling, posing direct risks to trucks and crews.”
Iraq had reduced oil production by about 80 percent, to 800,000 barrels, due to shipping difficulties.
Operations Despite Risks
Despite the risks, initial convoys have begun moving, indicating an effort to proceed despite regional conditions. Ayash said continuation depends primarily on the ability of security forces in both countries to secure tanker routes, as well as the availability of financial, technical, and logistical resources needed to rehabilitate pipelines and pumping stations in both Iraq and Syria.
Economic Returns for Syria
According to current estimates and agreements under implementation, exporting Iraqi oil through Syrian territory is expected to generate direct and indirect financial and technical benefits for Syria. Transit fees alone could reach between $150 million and $200 million annually if operations run at high capacity.
The Syrian treasury would also benefit from port fees, storage and unloading charges, and road service revenues for trucks. Operating between 600 and 700 trucks daily would drive significant spending on fuel, maintenance, and road fees, stimulating economic activity along transit routes.
Ayash added that the arrangement could allow Syria to obtain shares of oil or derivatives at preferential prices or as part of transit compensation, easing its energy import bill. These revenues, he said, are vital under current conditions, contributing to economic recovery and foreign currency inflows, although final returns depend on export volumes and border security stability, which remains essential for sustaining exports through the Syrian route.
