The Middle East and the wider region have positive expectations regarding the new deal between the US and Iran.
As the agreement develops, it is clear that many countries and companies will want to take advantage of the potential reduction in conflict to secure new trade deals. One of the key features of this new regional order will be investment in new pipelines and energy projects.
The conflict with Iran exposed the problem that many countries face when relying on one maritime method of exporting oil. It has also illustrated how Iran is a destabilizing force in the region.
Many countries feel that Israel is also destabilizing, meaning that they will want to secure routes that avoid being close to both Iran and Israel. A ready-made route is through Syria or Turkey.
“Iraqi Prime Minister Ali Falih al-Zaidi and US Presidential Envoy Tom Barrack discussed plans to rehabilitate the Kirkuk-Baniyas oil pipeline during talks in Baghdad, as the two sides also reviewed regional developments and security issues, according to a statement from the Iraqi Prime Minister’s Office on Tuesday,” Syrian Arab News Agency (SANA), Syria’s official news agency, reported.
Kirkuk-Ceyhan oil pipeline enables Iraq to export via Turkey
Iraq has also requested to extend an agreement that focuses on the Kirkuk-Ceyhan oil pipeline. This is important because the pipeline enables Iraq to export via Turkey.
In another development, Offshore Energy's new site reported: “US-headquartered energy giant Chevron has signed on the dotted line to acquire a majority stake and operatorship in a block off the coast of Greece, currently solely owned by Helleniq Energy, a Greek integrated energy player.”
Beyond the energy deals, the US is also focusing its efforts on issues in the Eastern Mediterranean.
“Israel, Greece, Cyprus, and the United States have launched the East Med Energy Center, a new platform for cooperation in energy, technology, innovation, and research,” the Foreign Ministry reported last week. “The initiative will strengthen cooperation on energy security, cybersecurity, innovation, and critical infrastructure while bringing together governments, universities, researchers, and industry leaders.”
This initiative is significant, and Israel views it as a “major step forward in strengthening regional cooperation and building a more secure and connected Eastern Mediterranean.”
In addition, there is a new focus on rail and trade links in Syria that would link Turkey to Jordan, Iraq, and Saudi Arabia.
This is a new kind of “Great Game” in the region, as countries are rushing to invest in Syria and work with Iraq and other states to develop trade routes and corridors.
It will take time to see how it plays out, but the Iran war has likely accelerated some of these processes.