Strait of Hormuz at risk of losing role IEA unveils strategic diversification plan

The International Energy Agency (IEA) has proposed a project to build an Iraqi–Turkish pipeline that could bypass the Strait of Hormuz, Bloomberg reports.

IEA Executive Director Fatih Birol said a new oil pipeline linking Iraq’s Basra oil fields with the Turkish terminal in Ceyhan is being considered. According to him, the project could reshape energy transport routes and reduce reliance on the Strait of Hormuz.

“I believe a Basra–Ceyhan pipeline could be extremely attractive and a very important project for both Iraq and Turkey, as well as for regional supply security—especially from Europe’s perspective,” Birol added. He also noted that financing could be secured, adding: “Now is exactly the right time.”

Iraq relies heavily on the Strait of Hormuz to export oil from Basra, where some of the world’s largest reserves are located—around 90 billion barrels.

“The vase has been broken once, and it’s very difficult to fix,” Birol said, referring to the risks associated with the Strait of Hormuz. 

He added that the new pipeline is necessary “for Iraq and an opportunity for Turkey,” while also potentially becoming an important factor in Europe’s energy security.

The project would require a political agreement between Turkey and Iraq, as well as possible financial support from European countries, the IEA chief noted.

Türkiye has previously proposed expanding an existing pipeline between Ceyhan and the Kirkuk oil fields. In addition, Türkiye, Syria, and Jordan have agreed on upgrading transport infrastructure to create a corridor linking Southern Europe and the Persian Gulf.

According to Bloomberg, progress on the India–Middle East–Europe Economic Corridor (IMEC), backed by the United States, has slowed due to the Israel–Hamas war. The project envisions a rail link across the Arabian Peninsula. Regional instability and Houthi attacks disrupting Red Sea shipping have further stalled its implementation.

By Jeyhun Aghazada