Oil Producers Are Trying to Leave the Strait of Hormuz Behind. Iran Has Other Plans.
Goldman Sachs said enough new capacity could divert nearly 45% of pre-war Gulf oil exports away from the strait by end-2027.
- Gulf nations are accelerating pipeline and port construction to bypass the Strait of Hormuz amid escalating regional conflict, with Iraq and the United Arab Emirates already building major infrastructure to ensure energy export security.
- Iran and its Houthi allies in Yemen have threatened to disrupt oil exports through the Strait of Hormuz and the Bab el-Mandeb Strait, prompting Gulf producers to seek alternative routes to protect their economies.
- Iraq committed $1.5 billion to build a 435-mile pipeline to pump 2.5 million barrels of oil per day, while Goldman Sachs analysts project these routes could divert nearly 45 percent of pre-war exports by 2027.
- Analysts warn that new pipelines remain vulnerable to military strikes, as Iran previously struck a pumping station on Saudi Arabia's East-West pipeline in April, slashing throughput by 700,000 barrels per day.
- While alternate routes could carry up to 7.3 million barrels of oil per day by 2028, experts note these pipelines serve as a geopolitical hedge rather than a total replacement for the Strait of Hormuz.
12 Articles
12 Articles
Oil Producers Are Trying to Leave the Strait of Hormuz Behind. Iran Has Other Plans.
Governments across the Gulf are accelerating pipeline construction after Iran and its regional allies intensified attacks on commercial shipping, but experts say pipelines remain exposed to military strikes from Tehran.
Oil pipelines bypassing Strait of Hormuz would not end threat to Middle East crude exports
Persian Gulf oil producers are building or planning at least seven new pipeline projects to bypass the Strait of Hormuz, but analysts say pipelines are just as vulnerable to attacks by Iran.
Oil pipelines around the Strait of Hormuz won't end the threat Iran poses to Middle East crude exports
Oil producers are building or contemplating new pipeline projects to bypass the Strait of Hormuz, but this infrastructure is still vulnerable, analysts said.
Oil Shipments Can Avoid The Strait Of Hormuz, But No Sooner Than 2028
In a recent episode of the New York Times podcast, The Daily, journalist David Sanger spoke of Iran’s two leverage points against the United States: one is the nuclear threat, and the other is the Strait of Hormuz:The second piece of leverage they have is the ability to cause havoc in the world economy and world energy markets…that is not necessarily a lasting power for the Iranians. You’re already seeing countries figure out how to get energy e…
Pipeline, new port and container terminal: How Gulf nations building an alternative to Hormuz
Gulf nations are fast-tracking multi-billion-dollar pipelines and mega-port projects to bypass the Strait of Hormuz, as the US-Iran conflict continues to disrupt strait. The strategic infrastructure, backed by heavyweights like the UAE, Saudi Arabia, and Iraq, aims to protect global energy lines.
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