Iraq fuels Syria route as Hormuz disruption persists

What's happened

Iraq has begun importing gasoline via Syria under a three‑month deal, using the Baniyas port and land convoys to bypass the Strait of Hormuz closure. Syria is transporting the fuel for a transit fee, with Iraq aiming to move up to 200 tankers daily.

What's behind the headline?

Insightful context

• The push to bypass Hormuz is accelerating regional energy logistics integration, notably involving Iraq and Syria.
• The arrangement with UCC positions Syria as a critical corridor for Iraqi energy imports, potentially reshaping cross-border transit routes.
• The move may influence gas prices globally by creating alternate supply streams and diversifying routes.

What this implies for readers

• Countries reliant on Hormuz shipments may seek similar routes, increasing regional energy interdependence.
• Syria’s economic reboot hinges on such transit deals, potentially stabilizing its post-conflict economy but entangling it further in regional power dynamics.

Forecast

• If throughput meets targets, daily tankers to Iraq could rise, expanding logistics capacity and pressuring Hormuz-resilience strategies across the Gulf and wider markets.

How we got here

The Strait of Hormuz has been disrupted, prompting a scramble for alternative energy routes. Since September 2024, Hormuz closures have driven shifts in regional logistics, with Iraq seeking new supply lines and Syria leveraging its ports to become a transit corridor. A Qatar-based firm, UCC, is buying gasoline, while Syria handles transport and fees. Discussions include pipelines from Iraq to Syria and wider regional energy cooperation.

Our analysis

Arab News (Sept 25-29, 2026) and AP News (Sept 29, 2026) report the three-month gasoline transit via Syria, with UCC as purchaser and SPC/Syria handling transport; The New Arab (Sept 29, 2026) frames it within Iraqi-Syrian cooperation and potential long-term pipelines.

Go deeper

• Will other nations follow Iraq’s lead and route energy through Syria or other alternatives?
• How might this affect Iraqi oil exports if Hormuz remains disrupted?
• What are the risks for Syria's economy if transit volumes surge?

More on these topics

• Syria - Country in the Middle East

  Syria, officially the Syrian Arab Republic, is a country in Western Asia, bordering Lebanon to the southwest, the Mediterranean Sea to the west, Turkey to the north, Iraq to the east, Jordan to the south, and Israel to the southwest.

• Iraq - Country in the Middle East

  Iraq, officially the Republic of Iraq, is a country in Western Asia, bordered by Turkey to the north, Iran to the east, Kuwait to the southeast, Saudi Arabia to the south, Jordan to the southwest and Syria to the west.

• Baniyas - City in Syria

  Baniyas is a city in Tartous Governorate, northwestern Syria, located 55 km south of Latakia and 35 km north of Tartous. It is known for its citrus fruit orchards and its export of wood.

• Qatar - Country in the Middle East

  Qatar, officially the State of Qatar, is a country located in Western Asia, occupying the small Qatar Peninsula on the northeastern coast of the Arabian Peninsula.

• Associated Press - News agency company

  The Associated Press is an American not-for-profit news agency headquartered in New York City. Founded in 1846, it operates as a cooperative, unincorporated association. Its members are U.S. newspapers and broadcasters.

• Strait of Hormuz - Strait

  The Strait of Hormuz is a strait between the Persian Gulf and the Gulf of Oman. It provides the only sea passage from the Persian Gulf to the open ocean and is one of the world's most strategically important choke points.

• Banias - Archaeological site in the Golan Heights

  Banias (Arabic: بانياس الحولة‎; Modern Hebrew: בניאס‎; Judeo-Aramaic, Medieval Hebrew: פמייס, etc.; Ancient Greek: Πανεάς) is an ancient site that developed around a spring once associated with the Greek god Pan. It had bee

• Bashar al-Assad - President of Syria

  Bashar Hafez al-Assad is a Syrian politician who has been the President of Syria since 17 July 2000. In addition, he is commander-in-chief of the Syrian Armed Forces and Regional Secretary of the Arab Socialist Ba'ath Party's branch in Syria.