Iraq and Syria signed an agreement to rebuild an oil pipeline that would provide an alternative to the Strait of Hormuz.
Iraq, the second-largest oil producer in OPEC, has suffered heavily from the disruption to tanker traffic in the strait.
The pipeline, which has been closed since it was damaged during the U.S. invasion of Iraq in 2003, stretches from northern Iraq to Syria's Mediterranean coast.
The deal was signed at a Chamber of Commerce summit in Washington, where U.S. Energy Secretary Chris Wright presided over the signing.
The pipeline has a nameplate capacity of 700,000 barrels per day, according to the U.S. Energy Information Administration.
Iraq's oil production fell more than 50% to about 1.9 million barrels per day in June compared to around 4.2 million bpd in February, linked to U.S. and Israeli attacks on Iran.
Several Gulf states want to expand pipeline capacity to reduce their dependency on Hormuz.
