Iraq and Syria sign agreement to restore oil pipeline providing alternative to Strait of Hormuz
Iraq and Syria signed an agreement on Friday to rebuild an oil pipeline from Kirkuk in northern Iraq to Syria's Mediterranean coast, providing an alternative export route to the Strait of Hormuz. The deal was signed at a Chamber of Commerce summit in Washington D.C., with U.S. Energy Secretary Chris Wright presiding. The pipeline, which has a capacity of 700,000 barrels per day, has been closed since damage during the 2003 U.S. invasion of Iraq. Iraq, the second largest OPEC oil producer, has seen production drop over 50% to about 1.9 million barrels per day in June due to disruption in the Strait of Hormuz during the U.S.-Iran war. Iraqi Prime Minister Ali al-Zaidi, currently visiting the U.S., met with President Donald Trump on Tuesday. Analysts caution that while pipelines hedge against geopolitical risk, Iran could still attack loading facilities and terminals.