Iraq is preparing to expand crude oil and naphtha exports through Syrian ports as it moves to diversify trade routes after the Iran war disrupted its main Gulf shipping channels and effectively closed the Strait of Hormuz.

The shift builds on an existing arrangement that has already seen Iraqi fuel oil trucked overland to Syria’s Mediterranean port of Baniyas for re-export, according to Reuters.

Iraqi oil officials and Syria’s energy sector confirmed discussions are underway to scale up the corridor as a long-term strategy, even after normal shipping resumes in the Gulf.

Iraq currently exports around 3.6 million barrels per day, with most previously flowing through southern Basra terminals before the disruption.

Under the expanded plan, crude oil and naphtha shipments could begin moving by tanker-truck as early as July, with initial volumes of about 50,000 barrels per day once infrastructure is ready.

 Syria is also preparing additional unloading facilities at Baniyas, which is already handling around 900 tanker-trucks daily.

SOMO, Iraq’s state oil marketer, is expected to open offices in the Syrian port.

The route also provides Syria with transit fee income as it seeks economic recovery after years of war.

Iraqi fuel oil shipments via Syria have already reached markets in Africa and Europe.

Despite logistical risks, including damaged roads and safety incidents, both countries are working to expand capacity, with longer-term plans to rehabilitate pipelines that could significantly increase throughput.

The arrangement underscores Iraq’s push to reduce reliance on a single export corridor while leveraging alternative routes amid ongoing regional instability.