Iraq Reroutes Crude Through Syria After 70% Revenue Drop
Updated
Updated · Detroit News · Sep 2
Iraq Reroutes Crude Through Syria After 70% Revenue Drop
3 articles · Updated · Detroit News · Sep 2
Summary
Iraq has started exporting crude by tanker truck through Syria to the Baniyas refinery and Mediterranean coast, opening an overland route after the Strait of Hormuz was largely shut to its oil trade.
More than a month into the Middle East war, Iranian attacks and threats in retaliation for US-Israeli strikes disrupted Hormuz traffic, hitting Iraq especially hard because oil provides about 90% of budget revenue.
An Iraqi official said oil revenue in August fell more than 70% from February, underscoring the urgency of finding an alternative export channel.
The Syria route already faces practical limits, including potholed roads, tanker accidents and uncertainty as a planned pipeline could eventually replace some truck traffic.