Middle East oil producers seek Strait of Hormuz alternatives as the U.S.-Iran war escalates

Key Points:

• Gulf countries are investing billions in pipeline projects to bypass the Strait of Hormuz, aiming to reduce dependence on this critical but vulnerable oil transit route amid ongoing tensions with Iran.
• At least seven major pipeline initiatives are underway or planned, including Saudi Arabia's East-West pipeline to the Red Sea and the UAE's expansion of oil exports through Fujairah, with completion targets around 2027.
• Iraq is developing alternative export routes to the Mediterranean via Turkey and Syria, as well as potential pipelines to Jordan, to circumvent Hormuz and sustain its oil revenues.
• These new pipelines could enable up to 60% of the Gulf's prewar oil exports to bypass the Strait of Hormuz by 2028, though alternative routes face risks such as attacks from Yemen's Houthi rebels and logistical challenges like longer shipping distances.
• Despite pipeline expansions, vulnerabilities remain for liquefied natural gas (LNG) shipments, which heavily relied on the strait before the conflict and currently have no pipeline alternatives.