Iraqi Prime Minister Ali al-Zaidi has allocated 16 billion Iraqi dinars ($12.2 million) to upgrade three key border crossings as trade between Iraq and Syria reaches record levels following disruptions to regional maritime routes.

The funding will support infrastructure projects at the Rabia, al-Waleed and Safwan border crossings, the Iraqi Border Ports Authority said on Tuesday.

Border Ports Authority spokesperson Aladdin al-Qaisi said the Rabia and al-Waleed crossings, which opened in April, initially recorded limited commercial activity. However, trade through the crossings increased sharply after maritime traffic through the Strait of Hormuz was disrupted.

Qaisi said trade between Iraq and Syria has now reached its highest levels, with Iraq increasingly relying on alternative routes to maintain exports and imports amid regional instability.

Iraq is currently transporting oil to Syria by tanker trucks at a rate of approximately 1,500 trucks per day. A similar number of trucks return to Iraq, supporting about 3,000 truck drivers and their families while generating additional economic activity for businesses along the routes.

In addition to oil, Iraq continues to export construction materials and sulfur to Syria, while importing vegetables and other goods from its neighbor.

The increased trade comes as Baghdad seeks to diversify its export routes following the disruption of maritime commerce after the escalation of conflict involving Iran and the United States and Israel. The Strait of Hormuz remains a crucial regional trade route and has historically handled the vast majority of Iraq's seaborne oil exports.

Meanwhile, economic ties between Iraq and Syria are also being strengthened through private-sector cooperation. The heads of the two countries' chambers of commerce recently signed a memorandum of understanding in Damascus aimed at expanding trade and investment and strengthening their economic partnership.

Iraq is also seeking to capitalize on its substantial natural resources. The country's Industry Ministry previously said Iraq possesses more than 400 million tons of sedimentary sulfur reserves, primarily located in the Mishraq fields in Nineveh province.