US Imports First Iraqi Fuel Oil Cargo Routed Through Syria's Baniyas Port

Iraqi Fuel Oil Reaches the US via Baniyas

Reuters reported on Thursday, July 23, 2026, citing two unnamed sources and data from commodity analytics firm Kpler, that the United States has received its first shipments of Iraqi fuel oil routed through Baniyas port in Syria's Tartus governorate. An engineer at the port told Reuters that Syria had not exported crude oil or petroleum products for years, with the sole exception of a single shipment in September 2025, and that all current cargoes departing Baniyas consist exclusively of Iraqi-origin fuel oil.

Details of the Three Tanker Voyages

Three Aframax-class tankers carried the cargoes between June and late July 2026:

• On Passion: Departed Baniyas on June 17 carrying approximately 716,600 barrels. Around 487,600 barrels were discharged in the Bahamas in mid-July, with the remainder scheduled for delivery to the US state of Texas.
• Nissos Christina: Departed by July 8 with approximately 288,500 barrels, with discharge on the US Gulf Coast expected in early August.
• Green Warrior: Loaded approximately 414,400 barrels between mid and late July and is expected to arrive in the United States during the third week of August.

Taken together, these three cargoes represent the first fuel oil shipments from Syria bound for the United States, according to Kpler data.

Regional Context and the Hormuz Closure

The closure of the Strait of Hormuz amid US-Iran hostilities has revived Iraq's overland oil export route through Syria to Baniyas port. Matt Smith, head of commodity research at Kpler, noted that the United States has been seeking to fill a supply gap caused by the suspension of Gulf region oil flows, while Baniyas has significantly increased its fuel oil exports in recent months. The US had already begun importing Iraqi fuel oil directly since March, with its broader import mix also drawing from Mexico and Algeria.

Two Memoranda of Understanding for Pipeline Revival

On July 18, 2026, Syria's Ministry of Energy announced the signing of two memoranda of understanding during meetings held in the United States, aimed at reviving the Iraqi-Syrian pipeline project:

• First MoU: Signed between the Syrian Petroleum Company and Basra Oil Company, covering the rehabilitation of the Haditha-Baniyas pipeline to restore a vital corridor for transporting Iraqi oil to Syrian Mediterranean export terminals.
• Second MoU: Signed between the Syrian Petroleum Company and an international consortium comprising Chevron, UCC Holding, and TI Capital, covering the technical and financial studies required for the project and establishing the implementation framework for rehabilitating the pipeline and its associated facilities in accordance with approved technical standards.

Target Operating Capacity

Syria's Ministry of Energy described the project as one of the region's most significant strategic infrastructure undertakings. Rehabilitation work is aimed at achieving an operating capacity of approximately two million barrels of crude oil per day, which would cement Syria's role as an energy transit corridor between Iraq and Mediterranean markets.