Iraq has suspended crude oil exports to Syria, citing regional instability, in a move that threatens to deepen Syria's fuel crisis, Iraqi officials said on December 22.

The decision to halt shipments of approximately 120,000 tonnes of crude per month was implemented on December 17, Iraqi parliamentarian Mustafa Sanad said on social media.

"Iraq has decided to stop providing Syria with crude oil starting this month," Sanad wrote on his social media account.

The suspension coincides with a separate announcement by the Syrian Democratic Forces (SDF) to cease oil deliveries from their eastern Syria territories to areas under the Syrian transitional government's control.

Fuel prices in Syria have surged over the past fortnight amid dwindling supplies at petrol stations, local sources said, with distribution hampered by security concerns affecting transport routes between provinces.

The Iraqi export halt comes at a crucial time for Syria's transitional government, which has been seeking to stabilise the country's economy while major oil fields remain under SDF control.

Iraq's decision reflects growing concerns about regional security and economic risks, according to government officials who spoke on condition of anonymity because they were not authorised to discuss the matter publicly.

Syria has relied heavily on Iraqi oil imports to supplement domestic production, which has been severely curtailed by years of conflict and fractured territorial control.

Neither interim Syrian authorities led by former terror group leader Ahmed al-Sharaa (Al Jolani) nor the Kurdish-US-backed SDF immediately responded to requests for comment.

Following the announcement by Iraq, Foreign Minister Fuad Hussein voiced concern about the possible resurgence of terrorist organisations in Syria while stressing Iraq's commitment to respecting Syrian sovereignty.

Speaking at a joint press conference with his Omani counterpart Badr Albusaidi in Baghdad, Hussein addressed the evolving situation in Syria whilst highlighting the diplomatic role of regional partners in managing the crisis.

"Whilst we respect the Syrian people's choices, we remain vigilant about the potential return of terrorist organisations," Hussein said during the briefing.

He noted that Iraq continues to monitor developments and changes in Syria closely.