US oil firms sign $60 billion deals with Iraq for oil routes

Major U.S. energy companies signed agreements valued at approximately $60 billion with the Iraqi government on Friday, July 17, 2026, in a strategic move to develop alternative oil export routes that bypass the vulnerable Strait of Hormuz. The deals, formalized at the U.S. Chamber of Commerce in Washington, D.C., involve industry giants Chevron, ConocoPhillips, and Halliburton, alongside other firms, and aim to reduce global oil supply dependence on the Persian Gulf chokepoint.

The agreements are a direct response to the ongoing conflict between the United States and Iran, which began on February 28, 2026. Iran has repeatedly sought to close the Strait of Hormuz, a narrow waterway through which roughly one-fifth of the world's oil flows, causing significant volatility in global energy prices. The instability has accelerated long-discussed plans for overland pipelines to transport Iraqi crude to Mediterranean ports, thereby avoiding the strategic risk entirely.

Chevron was a central player, signing three preliminary accords. Two focus on boosting production at Iraq's major West Qurna 2 and Nassiriya oil fields, while a third involves investing in a pipeline consortium exploring a...