At least seven major pipeline projects are being accelerated or newly pursued across the Gulf as producers try to reroute exports away from the Strait of Hormuz after Iran’s chokehold sent oil prices surging.
Goldman Sachs estimates the new projects could add 3.8 million barrels a day of bypass capacity by end-2027 and 7.3 million by end-2028, allowing about 60% of the Gulf’s prewar 23 million-barrel daily exports to avoid Hormuz.
The UAE is speeding a $3 billion, 300-kilometer line to Fujairah that would add more than 1.2 million barrels a day, while Iraq is advancing routes from Basra toward Turkey, Syria and Jordan after cutting output because it remains heavily reliant on the strait.
Existing Saudi and UAE bypass lines had 3.5 million to 5.5 million barrels a day of spare capacity before the war but are now near full use, underscoring why producers see Hormuz dependence as untenable.
Those alternatives still carry risks: Houthi rebels said they attacked two Saudi tankers in the Red Sea on Thursday, pipelines can be struck, longer routes raise costs, and they do nothing for LNG, about one-fifth of which had transited Hormuz before the war.
With oil flows rerouted, how will the world replace the massive volume of LNG still trapped behind the Hormuz chokepoint?
As Gulf nations build pipelines to bypass Hormuz, are they just creating new, more vulnerable targets for attack on land?
The 2026 Strait of Hormuz Blockade: Gulf Bypass Pipelines, Global Supply Chains, and Geopolitical Upheaval
Overview
The Strait of Hormuz crisis began with escalating military actions between Iran and the United States, including reported strikes on military sites and claims by Iran’s Revolutionary Guards of targeting US bases across the region. Iran’s IRGC asserted control over maritime traffic in the Strait, but this was quickly disputed by US Central Command, which maintained that the waterway remained open with US military support. These events highlighted the vulnerability of global energy and trade routes, prompting Gulf states to urgently seek alternative export channels and invest in new infrastructure to reduce reliance on the Strait of Hormuz.