US envoy Thomas Barrack pushed partner firm into $15 bn Hormuz-bypass pipeline despite ethics concerns

In his role as US special envoy to Iraq and Syria, Thomas Barrack promoted TI Capital, a firm led by his longtime partner Ziad Ghandour, for involvement in a $15 billion project to rehabilitate the Kirkuk-Baniyas oil pipeline that would avoid the Hormuz chokepoint. The consortium, which also includes Chevron and Qatar’s UCC Holding, signed memorandums of understanding with Iraq and Syria in July. Barrack’s push came after a joint statement with Iraqi Prime Minister Ali al-Zaidi praised Iraq’s decision to work with TI Capital, omitting other partners.

Although no direct profit from the pipeline is evident, ethics lawyers warn that his personal ties create a serious conflict-of-interest concern under federal rules. He has not filed a waiver with the US Office of Government Ethics, and the State Department maintains he has no financial stake in the project. The disclosure also shows Barrack retains a 20% profit share in a San Francisco housing venture managed by TI Capital.