The Strait of Hormuz is a vital chokepoint for energy exports from Gulf nations such as Iraq, Kuwait, Qatar, and Bahrain. Due to the U.S.-Iran conflict, navigation through the Strait of Hormuz has now been virtually halted. According to reports from the United States on the 24th, governments and energy companies in several Middle Eastern countries are accelerating the construction of pipelines, ports, and transport corridors aimed at bypassing the Strait of Hormuz to transport energy and other goods.
Saudi Arabia has announced the expansion of an oil pipeline connecting its eastern oil-producing regions to the port of Yanbu on the west coast, in order to bypass the Strait of Hormuz and transport crude oil to export terminals on the Red Sea side. However, reports indicate that as the Houthi rebels enforce a naval blockade against Saudi Arabia, if oil tankers carrying Saudi crude cannot sail south from the Red Sea through the Strait of Mandeb—which is controlled by the Houthis—their only route would be to sail north from the Red Sea through the Suez Canal and into the Mediterranean Sea via a detour. This would significantly increase both the transit time and costs for transporting Saudi crude oil.
The United Arab Emirates (UAE), another major crude oil exporter in the Middle East, operates the Port of Fujairah south of the Strait of Hormuz, which currently exports 1.8 million barrels of crude oil per day to global markets. The UAE has announced a large-scale port expansion plan, which is expected to double its oil export capacity—by bypassing the Strait of Hormuz—to 3.6 million barrels per day by the end of 2027. In addition, Kuwait is negotiating with neighboring countries to expand pipeline systems that would allow it to transport its crude oil around the Strait of Hormuz.
It is reported that another Middle Eastern oil-producing country, Iraq, is currently deploying a massive fleet of trucks to transport oil to Syrian ports on the Mediterranean Sea for export. Iraq also plans to construct new crude oil pipelines and repair old ones to bypass the Strait of Hormuz when exporting oil.