Overview
- Multiple outlets report the deal is expected to be unveiled at a mid-July White House meeting between Iraqi Prime Minister Ali al-Zaidi and President Donald Trump, though officials have not yet issued a final signed agreement.
- US envoys led by Tom Barrack have helped negotiate commercial and political terms and Iraq has approved preliminary feasibility work with US firms including TI Capital and Chevron along with a Qatari partner.
- Sources say the pipeline, built in 1952 and out of service since damage after 2003, likely needs wholesale replacement and would take about two to three years to rebuild under a consortium model.
- The plan responds to new pressures on Gulf shipping, including Iran's reported cryptocurrency transit fees for Hormuz and Iraq's current crude trucking to Baniyas, and seeks to blunt Iran's leverage over Iraqi oil revenues.
- Significant risks remain on security, political and financing fronts, including opposition from Iran-aligned Iraqi militia factions, the need to secure transit across unstable areas, and remaining approvals before work can begin.