Iraq and Syria Sign Deal to Re-Establish Major Oil Pipeline
Your Daily Update for July 18, 2026. Plus: Iraq and Syria have signed an agreement to restore an oil pipeline that could provide an alternative to the Strait of Hormuz.
Welcome to today’s daily update for Saturday, July 18, 2026. Here’s everything you need to know.
The Breakdown
Iraq and Syria have just signed a deal that could circumvent the Strait of Hormuz.
More than two decades ago, a crucial pipeline stretched from Iraq to Syria’s Mediterranean coastline, supplying oil from the Persian Gulf to the world without depending on the Strait of Hormuz. This oil was imported through several ports along Iraq’s narrow coastline on the Gulf, like Basra and Umm Qasr, before being transported to Syria via the pipeline.
However, when American forces invaded Iraq in 2003, significant damage was inflicted upon the crucial infrastructure, rendering the pipeline unusable. Since then, almost all Gulf oil has been exported through the Strait of Hormuz – until this year, when Iran effectively shut down the strait after the US and Israel launched a military campaign against the nation’s authoritarian regime in February.
This closure has had a significant impact on Iraq, who rely completely on their small Gulf coastline to export millions of barrels of oil per day.
Now, Iraq and Syria have signed off on an agreement that would restore the pipeline, boosting both countries’ respective economies while creating another passageway for oil to exit the Gulf without running into problems with US-Iran tensions.
They confirmed the deal at a Chamber of Commerce summit in the United States, who are currently looking to invest in Iraq. As a whole, the US signed more than $60 billion in deals with the Iraqi government during their visit, consisting of the construction of these alternative routes alongside additional investments in healthcare, communications, and more.
Within this agreement, the renovated pipeline would begin at Iraq’s largest port, the Port of Basra before carrying more than 2 million barrels of oil per day to the western Iraqi city of Haditha. From there, it would split, with one branch taking oil to the Syrian port of Baniyas and the other carrying oil to Ceyhan, Turkey.
Nevertheless, the restoration of the pipeline would truly begin to impact global trade within the next few years; the process is long and arduous, meaning that many experts believe that the Strait of Hormuz will be back open by the time the pipeline is completed.
This year’s war seriously exposed the vulnerability of Gulf oil to conflicts in the Strait of Hormuz, initiating several pipeline projects crossing Saudi Arabia, Syria, Iraq, Turkey, and the UAE. Estimates from Goldman Sachs claim that by 2028, these pipelines could supply more than 60% of the oil that is currently shipped through the Strait of Hormuz, heavily reducing dependency on the waterway.
The Global Snapshot
US President Donald Trump President continues to blame Canada for the wildfire smoke wafting into the northern US, threatening to ramp up tariffs or impose sanctions to compensate for “this atrocity.” However, Canadian officials have responded strongly:
“Maybe what you should do rather than complain is send support, send help. Because we have done the exact same thing for our American friends, and that’s what you’re supposed to do.”
— Ontario Premier Doug Ford
Last month’s pair of devastating earthquakes in Venezuela killed over 5,000 people, according to the latest reports, and the death toll continues to rise. Thousands of others remain injured and over 20,000 people have been displaced, but aid is steadily flowing into the nation to assist recovery efforts. The International Monetary Fund (IMF) has also released more than $346 million to fund reconstruction in damaged areas.
At least eight people are dead and 34 others were left injured after a landslide struck China’s Chongqing province. More than 1,100 people were evacuated as rocks began tumbling down the mountainside, crushing ten residential buildings. The landslide came after days of heavy rain, and much of the rock at the top of the affected hill remains unstable.
Fact of the Day (The Fact Site): The fear of vegetables is called lachanophobia. It is more severe than simply disliking greens and can trigger genuine panic attacks or extreme anxiety at the mere sight, smell, or thought of vegetables.
Quote of the Day (Gracious Quotes): You define your own life. Don’t let other people write your script. (Oprah Winfrey)
Word of the Day (Merriam-Webster): Obdurate (adj, AHB-duh-rut) - Obdurate is a formal word that means “resistant to persuasion.” It is usually used to describe someone who is not willing to change their methods or opinions, or something that is not easily altered.
In a Sentence: Though obdurate problems loom, the organization under its new leadership is poised to make real and effective changes.
Image: DVIDS / Public Domain
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