This week, US President Donald Trump met Syrian President Ahmed al-Sharaa on the sidelines of the NATO summit in Türkiye. During this time his mood was not very good, because just a few hours ago Iran had fired on commercial ships in the Strait of Hormuz. Angered by this incident, Trump even called the Iranians despicable. After this step of Iran, a big crisis has arisen on the supply of oil and gas through Hormuz. Trump now sees the solution to this crisis in Syria.
Trump wants to develop Syria as a new energy corridor. Let us know why America lifted the sanctions on Syria, why it opened the way for investment there and how oil and gas from Gulf countries can be directly transported to Europe through Syrian ports. If this plan succeeds, how much weaker will Iran’s hold on Hormuz be?
US’s big gift for Syria
Trump gave a huge diplomatic gift to Syria. On Thursday he announced that America was removing Syria from the list of countries promoting terrorism. Earlier last year, many sanctions were also lifted from Syria. This decision has opened the way for American companies to invest in Syria. The US government has also issued an investor guide for investment in oil, gas, electricity and banking sectors. Trump clearly told Al-Sharaa that American companies are ready to invest in Syria and make it greater and more prosperous than ever before.
Strategy to bypass Hormuz
The geographical location of Syria is very strategic. On one side its boundaries meet the long coast of the Mediterranean Sea and on the other side it is connected to the oil-rich Middle East countries. According to The Telegraph report, if oil and gas from Gulf countries (such as Saudi Arabia and Qatar) are transported directly through pipelines to Syria’s coastal ports (such as Baniyas and Latakia), then these ships can be sent directly to Europe. This will eliminate the need to pass through the Strait of Hormuz.
If this happens, the power of Iran which it uses to scare the world by attacking commercial ships will be reduced. Geographically, Syria is certainly an excellent alternative to Hormuz. Although it is not as easy as Trump or the Syrian government is making it out to be, it is still a big opportunity for Syria.
Potential to become a new oil hub
Syria has proven oil reserves of about 2.5 billion barrels. According to some estimates, if its coastal areas are included then this reserve could be up to 27 billion barrels. Transport of oil through Syria has already been tested. Whereas before the war, Iraq used to send 4 million barrels of oil by ships every day, now it is transporting about 2 lakh barrels of oil daily through Syria through trucks.
American and Saudi companies are also showing interest in Syria. In February, American company Chevron signed an agreement with Syria’s state petroleum company to develop the country’s first offshore oil and gas field. Apart from this, a Saudi-American consortium has also been formed for oil exploration in north-eastern Syria.
How many challenges are there on the way?
- Threat of terrorism: Terrorist groups are still active in Syria. In early June, an Iraqi fuel tanker was attacked in northern Syria. There were explosions in the capital Damascus on July 7 during the visit of French President Emmanuel Macron. Two blasts took place 125 meters away from the Four Seasons Hotel where Macron was staying.
- Shortcomings of Banking System: Syria’s banking structure has collapsed due to decades of sanctions. Making international transactions is difficult and tracking money is almost impossible, leading to fears of money laundering and terror funding.
- Russia’s presence: Russia has a strong military and commercial presence in Syria. Russian troops supported Bashar al-Assad against the rebels of al-Sharaa. A commercial logistics hub is scheduled to open in Syria’s Tartus port in mid-July, connecting the Syrian coast to Russia’s Black Sea port Novorossiysk.
- Fear of Gulf countries: Gulf countries would hardly want Syria to have so much control over their oil supply, because oil is the backbone of their economy.
Israel is on the borders of Syria. Apart from this, the tension between Türkiye-Israel and Israel-Iran is well known. The world will have to decide whether Syria will become a safe route for trade or not.
Also read: Iran active again after the attacks! Movement seen at nuclear and missile sites
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