The deal between an unnamed American company and the Kurdish militia controlling oil-rich northeastern parts of the Arab Republic was announced on 2 August by US Senator Lindsay Graham despite the armed groups having no authority to strike deals on behalf of the Syrian government.

Iranian Foreign Ministry's spokesman Abbas Mousavi denounced the deal between an American company and the Kurdish Syrian Democratic Forces militia group as "illegal" and a violation of Syrian sovereignty.

"The signing of an oil deal between the United States and a group of Syrian Kurds runs counter to international regulations and violates Syria's sovereignty and integrity", the spokesman said.

Mousavi went on to add that the deal is another step in the theft of the country's resources and that it "lacks any legal status" since it was signed by an "occupying force", referring to the illegal status of the US military deployments in Syria. Washington's troops have no UN mandate or invitation from the Syrian government to justify their stay in terms of international law.

The deal, which was reportedly signed by the Delta Crescent Energy LLC, was announced by Republican US Senator Lindsay Graham on 2 August, who explained that it involves the modernisation of the oil wells in northeastern Syria. The agreement, however, was met without enthusiasm in Damascus, which slammed the move as the "theft" of Syria's national resources and an "affront to national sovereignty".

Turkey also strongly condemned the deal, calling it equivalent to funding terrorism, as the country deems the Kurdish militia, including the SDF, as terrorist organisations.