Iraq and US Sign 48 Deals, Reviving Pipeline to Bypass Hormuz
The agreements, valued at over $60 billion, include the rehabilitation of the Kirkuk-Baniyas oil pipeline, offering Iraq a 2 million barrel-per-day export route that avoids the disrupted Strait of Hormuz.
Iraq and the United States signed 48 agreements, memoranda of understanding and partnership declarations during Prime Minister Ali al-Zaidi’s visit to Washington, valued at over $60 billion. The centrepiece is a commitment to revive the long-dormant Kirkuk–Baniyas crude oil pipeline, offering Baghdad a 2 million barrel-per-day export route to the Mediterranean that bypasses the Strait of Hormuz. The waterway has been severely disrupted by the US-Iran war, halving Iraq’s oil output and slashing revenues in a state where hydrocarbons fund over 90 per cent of the budget.
The pipeline, built in 1952 and damaged beyond use during the 2003 invasion, is to be revived by a consortium of Chevron, Qatar’s UCC Holding and Capital TI, which will prepare technical and financial studies. The US State Department called it a priority infrastructure of bilateral and regional strategic importance. Viewed from Washington, the initiative is part of a broader effort to rewire regional energy corridors and reduce the vulnerability of Gulf exports to chokepoint crises. Tom Barrack, the US special envoy, told a business gathering that the aim was to turn Hormuz into a ‘secondary’ route within two years, with parallel plans for a ‘Middle Corridor’ carrying Central Asian gas to Europe via Turkey.
For Iraq, the pipeline offers a lifeline. The World Bank estimates the country’s GDP will contract by 8.9 per cent this year after the Hormuz closure erased tens of billions of dollars in export earnings. The deals also span electricity, satellite internet through Starlink, and partnerships with ExxonMobil, Halliburton and Shell. Politically, the visit cemented Zaidi’s standing with Washington: President Trump called him a ‘champion’, and the US has backed his pledge to disarm pro-Iran militias. Tehran’s reaction was swift; a senior adviser to the Supreme Leader dismissed the prime minister as young and inexperienced and called the trip a ‘great disgrace’.
The pipeline agreement remains a framework; no construction contract has been signed, and no timeline for commissioning has been set. The consortium must first complete feasibility work, while Baghdad and Damascus negotiate transit rights, revenue sharing and security arrangements. Zaidi is expected to travel next to Qatar and Iran, where the economic and military dimensions of the realignment will be tested. The immediate milestone to watch is the delivery of the technical studies, which will determine whether the 2 million barrel-per-day ambition moves from paper to steel.
| Atlantic / Anglosphere press | +0.80 | aligned |
|---|---|---|
| Iranian & allied press | −0.70 | critical |
| Arab Gulf press | +0.50 | aligned |
| Arab Levant-Maghreb press | +0.20 | neutral |
The United States celebrates the deal as a strategic victory that strengthens its influence in the Middle East and reduces dependence on the Strait of Hormuz.
Emphasizing the $60 billion figure and the involvement of major companies like Chevron creates a narrative of economic success and energy security, obscuring geopolitical implications for Iran.
The Atlantic bloc omits Iranian concerns about the marginalization of the Strait of Hormuz and the sanctions still in place against Syria.
Iran denounces the deal as a hostile US maneuver to isolate Tehran and control energy routes.
The narrative focuses on the threat to Iranian sovereignty and regional stability, using language of 'direct attempt' and 'undermine' to create a sense of urgency and victimhood.
Iran omits the economic benefits for Iraq and the fact that the project was discussed openly with American companies, not as a secret.
The Gulf states welcome the agreement as an opportunity to diversify energy routes and strengthen regional cooperation.
The article uses the US embassy statement to legitimize the project as part of a broader vision, minimizing potential tensions with Iran.
The Gulf bloc omits Iranian concerns and the fact that the pipeline crosses Syria, a country still under international sanctions.
The agreement is presented as a technical step to improve Iraqi exports, with the US State Department's endorsement lending legitimacy.
By quoting the US State Department directly and describing the project as 'strategic', the report confers legitimacy without adding critical commentary.
The Arab Levant-Maghreb bloc omits discussion of implications for Iran or sanctions on Syria, maintaining a neutral tone.
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