U.S. oil giant Chevron Corp. is in preliminary talks to invest in major Iraqi oil fields and is evaluating the reconstruction of a long-dormant pipeline to the Syrian coast, a move aimed at bypassing the increasingly volatile Strait of Hormuz.

The $366 billion energy behemoth is scheduled to sign early-stage agreements with the Iraqi government following a meeting Thursday between Iraqi Prime Minister Ali Al Zaidi and Chevron Vice Chairman Mark Nelson at the company's Houston headquarters.

Central to the discussions is a proposal to rebuild a defunct oil pipeline stretching from Kirkuk, Iraq, to the Syrian Mediterranean port of Baniyas.

The pipeline has been out of service for more than two decades after sustaining severe damage during the 2003 U.S. invasion of Iraq.

If resurrected, the pipeline would provide a crucial land-based alternative to the Strait of Hormuz, a maritime chokepoint responsible for transit of 20% of the world’s oil supply.

Ongoing regional conflicts and blockades have forced Persian Gulf nations to pour billions of dollars into alternative rail and pipeline corridors.

A senior Trump administration official stated that the United States is actively facilitating energy development conversations between Iraq and Syria to support regional diplomatic ties.

A senior Chevron official cautioned that while talks have been ongoing for 12 to 18 months, the preliminary deals remain "a long way from the finish line."

Chevron confirmed it is discussing investments in the Nasiriyah and West-Qurna-2 oil fields but declined to comment directly on the pipeline project, citing policy against discussing commercial matters.

The infrastructure push comes amid tightening global energy supplies. Recent drone strikes on Russian refineries and the expiration of a U.S.-Iran ceasefire have driven fuel prices upward worldwide.

The resulting crude spike has heavily impacted importing nations like Australia.

Energy analysts warn that international emergency oil reserves are depleted, leaving vulnerable countries to face dwindling stockpiles that fall well below the International Energy Agency’s mandated 90-day supply cushion.