Gulf oil producers accelerate pipeline projects to bypass Strait of Hormuz

Amid escalating Iranian attacks on commercial shipping and a string of U.S. air strikes on Iranian military sites, Gulf oil exporters are fast‑tracking a suite of pipeline projects designed to divert crude away from the vulnerable Strait of Hormuz. At least seven major pipelines—some under construction, others in advanced planning—are being pursued by Saudi Arabia, the United Arab Emirates, Iraq and other regional actors. Saudi Arabia’s East‑West pipeline already moves oil from the Abqaiq hub to Yanbu on the Red Sea, while the UAE is expediting a $3 billion, 300‑km line to Fujairah, expected by mid‑2027. Iraq is developing routes to Turkey, Syria and Jordan’s Aqaba port. Together the projects could provide 3.8 million barrels per day of bypass capacity by the end of 2027, rising to 7.3 million bpd by 2028, potentially allowing up to 60 % of Gulf exports to avoid Hormuz.

The alternative routes remain exposed to regional threats. Yemen’s Iran‑backed Houthi rebels have recently blocked the Bab el‑Mandeb strait and attacked Saudi tankers in the Red Sea, underscoring the risk that new pipelines and Red Sea export corridors could also be targeted. The ongoing conflict has already pushed Brent crude above $100 a barrel, highlighting the market’s sensitivity to disruptions in both Hormuz and the Red Sea.

U.S. Central Command reported its 13th consecutive night of strikes against Iranian command centers, drone storage, and maritime assets, stating that the waterway remains open for commercial traffic under U.S. protection. The combined security pressures and infrastructure efforts illustrate a strategic shift by Gulf producers to reduce reliance on a chokepoint that skirts Iran’s coastline.