US companies have signed $60 billion in agreements with Iraq, including major energy projects designed to develop oil export routes that bypass the Strait of Hormuz. The deals aim to strengthen Iraq’s energy infrastructure amid continued regional tensions affecting global oil markets.
The agreements were signed at the US Chamber of Commerce and cover sectors including energy, healthcare, communications, and infrastructure. However, oil pipeline projects attracted the greatest attention because they are expected to reduce reliance on the strategically important Strait of Hormuz.
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Chevron signed three agreements with the Iraqi government, including two to expand oil production and one to develop a new oil export pipeline. Iraqi Prime Minister Ali Falah al-Zaidi said Iraq is seeking long-term investment partners and encouraged Chevron to accelerate its projects during meetings in Houston.
The US State Department also welcomed an agreement between Iraq and Syria to rehabilitate the Iraq-Syria crude oil pipeline. Officials said a US-led international consortium will oversee the project’s technical and financial implementation as part of broader regional energy cooperation.
The planned pipeline will extend from Basra through Haditha before connecting to Turkey’s Ceyhan port and Syria’s Baniyas terminal. Once completed, it is expected to transport approximately two million barrels of oil per day, providing Iraq with additional export capacity outside the Strait of Hormuz.
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According to analysts at Goldman Sachs, seven regional pipeline projects currently under development could eventually carry around 60% of the oil previously transported through the Strait of Hormuz by 2028. However, they cautioned that large-scale pipeline construction typically requires at least two and a half years.
Meanwhile, some Iraqi crude is already being transported overland into Syria for shipment through Baniyas as a temporary alternative. The latest agreements highlight growing efforts to diversify regional energy export routes and improve supply security amid ongoing geopolitical uncertainty.