On May 1, 2026, commercial ships sailed through the Strait of Hormuz off Musandam, Oman, a critical waterway that has been at the center of tensions in the region. Before the war in Iran, approximately 15 million barrels of Persian Gulf oil were shipped daily through this strait. However, with Iran’s ongoing chokehold over the strait and soaring oil prices, Gulf states are investing billions of dollars in pipeline projects to redirect oil supplies to ports along the Red Sea, Suez Canal, and Gulf of Oman. At least seven major pipeline projects are currently under construction, in the planning stage, or being discussed as possibilities, according to government officials, oil companies, and analysts.
Victoria Grabenwoger, a senior researcher at Kpler, emphasizes that relying heavily on the Strait of Hormuz is no longer a prudent long-term strategy. The Red Sea and Gulf of Oman have become vital alternatives to Hormuz. Saudi Arabia’s East-West pipeline, built in the 1980s, carries oil across the desert nation from Abqaiq to Yanbu on the Red Sea coast. The United Arab Emirates has also been sending more oil to the port of Fujairah, which is about 145 kilometers south of Hormuz.
The state-owned oil company of Abu Dhabi is accelerating construction of a $3 billion, 300-kilometer pipeline to Fujairah, which aims to increase oil supply by more than 1.2 million barrels a day. This project, which started before the war, is now reportedly about halfway completed. The pipeline is intended to be completed by early 2027, but Kpler says mid-2027 is more likely. Iraqi officials are also ramping up plans to develop alternative export routes for southern oil fields around Basra.
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📰 Source: Siasat Gulf