Iraq, Syria, and the United States plan to revive a historic 500-mile pipeline to Syria’s Mediterranean coast, a strategic move aimed at reducing Iran’s economic chokehold on the Strait of Hormuz, regional officials said.

The agreement to restore the defunct pipeline, which connects the northern Iraqi city of Kirkuk to the Syrian coastal town of Baniyas, is expected to be unveiled this week. The announcement will coincide with Iraqi Prime Minister Ali al-Zaidi’s White House meeting with U.S. President Donald Trump.

Tom Barrack, Trump’s ambassador to Turkey and envoy to Syria and Iraq, has brokered the deal ahead of Zaidi’s upcoming U.S. tour, which includes a scheduled stop in Texas.

According to a senior Iraqi official, Barrack intends to use the multi-billion-dollar infrastructure revival as a blueprint for Western-backed business projects across the Levant.

The project comes amid severe economic strain for Baghdad, with the ongoing regional conflict allowing Iran to assert total control over the Strait of Hormuz, blocking Iraq's primary trade route.

Iraq relies on the strait to export 95% of its crude, and oil sales constitute 90% of the state budget. According to energy analytics firm Vortexa, Iraq’s seaborne oil exports in May plummeted to just 8% of last year's average.

Originally built in 1952 with a capacity of 300,000 barrels per day, the Kirkuk-Baniyas line was shut down by Baghdad in the 1980s during the Iran-Iraq war and heavily damaged during the 2003 U.S. invasion.

Because the route requires extensive repairs to its pumps and electrical systems, officials estimate a wholesale replacement will take two to three years.

A consortium of U.S. firms, including Chevron and Capital TI, alongside a Qatari company, has already been enlisted for the preliminary reconstruction work.

The project gained traction after the Trump administration lifted major sanctions on Syria and removed the nation from the State Sponsors of Terrorism list following the ouster of Bashar al-Assad.

Syrian Foreign Minister Asaad al-Shaibani is expected to attend the formal signing ceremony in Washington.