Victoria Grabenwöger notes Gulf nations are building pipelines to reduce reliance on the Strait of Hormuz following the Iran war.
Victoria Grabenwöger, a senior research analyst at the data firm Kpler, stated that relying heavily on the Strait of Hormuz is no longer a prudent long-term strategy. As the Iran war continues to disrupt the maritime chokepoint, Gulf producers are investing billions in pipelines to redirect oil to the Red Sea, the Gulf of Oman, and the Mediterranean. Current infrastructure, such as Saudi Arabia's East-West pipeline and the UAE's route to Fujairah, is operating near full capacity. To increase supply, Abu Dhabi is accelerating a $3 billion pipeline to Fujairah, while Iraq is pursuing projects to connect its southern oil fields to Turkey and Jordan. These projects aim to carry an additional 3.8 million barrels of oil per day by the end of next year. While these alternatives provide relief, they face their own challenges. The Red Sea route is currently vulnerable to attacks by Yemen's Houthi rebels, and some pipelines are longer and more expensive than the original strait route.