Iraq Begins Syria Truck Exports as Revenues Plummet

Iraq has begun exporting crude oil using tanker lorries through Syria, its oil ministry has announced, as officials revealed that oil revenues in March fell by more than 70 per cent compared with February.

Over a month into the Middle East conflict, which has severely disrupted global energy markets, Iraq has been particularly affected, as oil exports account for around 90 per cent of its budget revenues.

Before Iranian attacks and threats effectively curtailed movement through the Strait of Hormuz in retaliation for US-Israeli strikes, Iraq exported most of its crude via the route.

Like other oil-producing nations in the region, Iraq has been forced to seek alternative export channels. In a statement issued late on Wednesday, the ministry confirmed it “has begun exporting oil by tanker truck through neighbouring Syria”.

It added that Syria would “ensure the safe passage” of the shipments and that export volumes would increase gradually, though no further details were provided.

A source within Iraq’s oil sector disclosed that, out of a planned 299 trucks, “178 tankers loaded with fuel oil” had already reached the Baniyas refinery port on the Mediterranean coast as part of the initial export phase.

According to Safwan Sheikh Ahmad, spokesperson for the Syrian Petroleum Company, the shipment entered via the Al-Tanf border crossing from Iraq. He explained that the oil would be offloaded at the Baniyas terminal and transferred onto tankers for onward export.

“The initial shipment, consisting of 299 tankers, will enter Syria in batches, with the second batch expected soon,” he said.

The development comes as Ali Nizar, head of Iraq’s State Oil Marketing Organisation, disclosed that the country’s oil revenues in March amounted to only about 28 per cent of February’s earnings.

However, oil expert Assem Jihad expressed doubts about the effectiveness of the Syrian route as a long-term solution.

“Exporting via tankers through Syria is very expensive and only secures the export of five million barrels of crude oil per month,” he said, noting that Iraq exported about 3.5 million barrels per day prior to the conflict.

He further indicated that the arrangement with Syria is expected to last for only three months, from April to June.

Previously, Iraq had announced the resumption of limited oil exports of about 250,000 barrels per day through the Turkish port of Ceyhan.