US hails plan to restore Iraqi-Syrian oil pipeline

The U.S. State Department reported a major oil pipeline between Iraq and Syria, which has been closed for decades, will be restored by the two countries.

"The United States welcomes the Government of the Republic of Iraq and the Government of the Syrian Arab Republic's intent to advance the rehabilitation and reconstruction of the Iraq-Syria crude oil pipeline as a priority infrastructure project," the State Department said in a statement, calling it "of bilateral and regional strategic significance."

The pipeline will link Iraqi oil production to export markets in the Mediterranean and beyond.

"Today's announcement marks an important milestone for the region and for Syria-Iraq relations," the State Department added.

Washington is overseeing an international consortium "to execute the technical and financial aspects of this project," which is expected to have an initial transport capacity of two million barrels of crude daily once fully rehabilitated, the department said.

In Damascus last week, TotalEnergies CEO Patrick Pouyanne said that Syria could become an "important transit country for oil coming from Iraq to the Mediterranean," especially with the need for "alternative routes" given the closure of the Strait of Hormuz from to the Iran war and its effect on global energy supplies.

Since April, Iraq has been transporting crude through Syria by truck to circumvent the closure of the strait, which briefly reopened after a fragile ceasefire but has since been locked down by Iran after U.S. strikes resumed earlier this month.

The announcement of the oil pipeline restoration comes as Iraqi Prime Minister Ali al-Zaidi visits Washington, with U.S. President Donald Trump praising his leadership.