UAE Builds 50% of Second Hormuz Bypass Pipeline as Blockade Cuts 100 Million Barrels Weekly
Updated
Updated · CNBC · May 20
UAE Builds 50% of Second Hormuz Bypass Pipeline as Blockade Cuts 100 Million Barrels Weekly
11 articles · Updated · CNBC · May 20
Nearly 50% of the UAE’s second pipeline to Fujairah is complete, giving ADNOC a route that will double export capacity outside the Strait of Hormuz when it starts operating in 2027.
Iran’s blockade of Hormuz since early March sped up construction after choking off Gulf Arab exports; ADNOC is relying on an existing Fujairah line that can carry up to 1.8 million barrels a day.
More than 1 billion barrels of oil have already been lost from the strait’s closure, and another 100 million barrels are being lost each week, ADNOC CEO Sultan Al Jaber said.
Even if the conflict ended immediately, oil flows would need at least four months to recover to 80% of normal levels and may not fully normalize until the first or second quarter of 2027.
The blockade followed U.S. and Israeli strikes on Iran on Feb. 28, and U.S. Energy Secretary Chris Wright said the crisis will push Gulf producers to build more bypass routes, reducing Hormuz’s long-term leverage.
Bypassing Hormuz shifts energy security risks from sea to land. Are these new pipelines a true solution or a different vulnerability?
The war was meant to weaken Iran's regime but strengthened its military. What does this paradox mean for the region's future?
Strait of Hormuz Blockade 2026: UAE’s OPEC Withdrawal and the Reshaping of Global Energy Security
Overview
Since late February 2026, the Iran war triggered a blockade of the Strait of Hormuz, causing a severe disruption in the global energy landscape. This led to a sharp reduction in Middle East oil production and a major supply shock, resulting in a projected global oil deficit of 3.7 million barrels per day. The crisis quickly spread, impacting economies worldwide and forcing urgent responses from nations. Beyond oil shortages, the conflict caused significant damage to Gulf infrastructure and hurt non-oil sectors, highlighting how regional instability can have far-reaching global economic consequences and drive the need for rapid crisis management.