Iraq starts exporting crude oil through Syria by tanker truck after war slashes revenues by over 70%, seeking alternatives to the blocked Strait of Hormuz.

BAGHDAD: Iraq has begun exporting crude oil using tanker trucks through neighbouring Syria. The move comes as the country’s oil revenues plummeted by more than 70% last month compared to February due to the ongoing Middle East war.

Oil exports account for roughly 90% of Iraq’s budget revenues. The conflict has severely disrupted energy markets, particularly after Iranian actions largely closed the strategic Strait of Hormuz.

This waterway was previously Iraq’s main export route. In a statement, the Iraqi oil ministry said Syria would “ensure the safe passage” of the oil and that exports would “gradually” increase.

A source in the Iraqi oil sector stated that 178 tanker trucks loaded with fuel oil had arrived at Syria’s Baniyas port refinery. This shipment is part of an initial phase involving a projected 299 trucks.

Safwan Sheikh Ahmad, spokesperson for the state Syrian Petroleum Company, confirmed the first batch entered through the Al-Tanf border crossing. He said the oil would be unloaded at Baniyas and transferred to tankers for further export.

“The initial shipment, consisting of 299 tankers, will enter Syria in batches, with the second batch expected soon,” he told AFP. The announcement coincided with a stark revenue report from Iraq’s State Oil Marketing Organisation (SOMO).

Director Ali Nizar said Iraq generated revenues of nearly 28% in March compared to February. Oil expert Assem Jihad questioned the viability of the Syrian route, noting it is very expensive and can only secure the export of five million barrels per month.

He added that the agreement with Syria will only cover three months from April to June. Before the war, Iraq exported 3.5 million barrels per day.

Last month, Iraq also announced it had resumed limited oil exports of 250,000 barrels per day through the Turkish port of Ceyhan.

 The Sun Malaysia