Beirut awaits the oil investment train: Lebanon's eyes towards Baghdad

A report published by the Emirati website “Erm News” revealed persistent efforts by the Iraqi government to open alternative routes for exporting oil away from the Strait of Hormuz, in light of the escalating regional tensions and in order to secure the flow of oil revenues, which constitute the backbone of the local economy.

In a remarkable development, the name of Lebanon – specifically the city of Tripoli – has emerged as one of the options proposed in the future within a potential road network linking Iraqi oil to the Mediterranean Sea, by taking advantage of the extension of the Syrian route. In this context, economic expert Manar Al-Obaidi explained to “Erm News” that this option is still in the technical and political research stage, and has not yet turned into an actual project under implementation.

Baghdad seeks to diversify its outlets by reviving old projects and developing new ones. The most prominent of which is the “Basra-Haditha” line, which represents the basic link in the plan due to its ability to transport oil from the southern fields to western Iraq, with a capacity that may reach 2.5 million barrels per day when completed. From there, the oil can be distributed to several ports, including “Haditha – Baniyas” in Syria, and “Basra – Aqaba” across Jordan, as well as the Turkish port of Ceyhan.

For his part, economics and energy expert Durgham Muhammad Ali confirmed that Baghdad is moving in two main directions, namely the Basra-Aqaba project, and reviving the Iraqi-Syrian oil line, noting that the success of the Syrian track is closely linked to securing financing and security guarantees, as well as concluding agreements on traffic fares, with the continuation of bilateral discussions between the two sides.

In the same context, Al-Obaidi indicated that the Iraq-Syria line has actually returned to the discussion table, pointing to the signing of an Iraqi-Syrian memorandum of understanding in July 2026 to rehabilitate the “Haditha-Baniyas” line, with the participation of the international “Chevron” company.

According to the report, the Turkish port of Ceyhan is the only land port currently operating, while the Baniyas route is considered the most advanced among the new projects, while Aqaba and Tripoli remain additional options within a broader strategy aimed at building an integrated network of land and sea ports that fortifies Iraqi exports against any potential disturbances in the Strait of Hormuz, subject to the availability of financing, security stability, and regional political understandings.