Bypassing the Strait of Hormuz: Gulf Countries Plan to Invest Heavily in Pipeline Export Projects

According to the Financial Times on April 2, Gulf countries are re-evaluating costly pipeline projects to bypass the strategic shipping chokepoint of the Strait of Hormuz, amid concerns that Iran may exert long-term control over the strait, threatening oil and gas exports. Government officials and industry executives note that although these pipeline projects are expensive, politically complex, and take years to develop, they may be the only way to reduce dependence on the strait. The current conflict further highlights the strategic value of Saudi Arabia’s 1,200-kilometer east-west pipeline. Built in the 1980s to address concerns over the Strait’s closure during the Iran-Iraq “Tanker War,” it has now become a critical lifeline, transporting 7 million barrels of crude oil daily to the Red Sea port of Yanbu, completely bypassing the Strait of Hormuz. Saudi Arabia is currently exploring ways to export more crude oil via pipelines, including expanding the capacity of the east-west pipeline or developing new routes.