The Middle East and wider region have positive expectations regarding the new agreement between the US and Iran. As this develops, it is clear that many countries and companies will now be seeking 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 countries face in relying on one maritime method of exporting oil. It has also illustrated how Iran is a destabilizing force in the region.
Many countries also feel that Israel is destabilizing. That means they will want to secure routes that avoid being close to Iran and Israel. A ready-made route is the one through Syria or Turkey.
According to Syrian state media, “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.”
Kirkuk-Ceyhan oil pipeline enables Iraq to export via Turkey
In another development, Iraq has also requested an extension of an agreement related to the Kirkuk-Ceyhan oil pipeline. This is important because it is a pipeline that enables Iraq to export via Turkey.
In another development, the website offshore energy reports that “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, there is also more work being done by the US on issues in the Eastern Mediterranean.
The Israeli Ministry of Foreign Affairs noted on June 12 that “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 initiative will strengthen cooperation on energy security, cybersecurity, innovation, and critical infrastructure while bringing together governments, universities, researchers, and industry leaders.” This is important. 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 countries such as Jordan, Iraq, and Saudi Arabia.
This is a kind of new “Great Game” in the region as countries rush to invest in Syria and work with Iraq and other countries to develop trade routes and corridors.