Gulf Nations Build Pipelines to Bypass Iranian Strait Closures

Oil-producing nations in the Persian Gulf are accelerating the construction of pipelines and ports to bypass the Strait of Hormuz after the Government of Iran closed the maritime chokepoint and attacked tankers during a five-month war with the United States. This strategic shift aims to eliminate Iranian leverage over global energy markets, as Tehran has attempted to impose tolls and demand protection money from ships.

The United Arab Emirates is fast-tracking its West-East Pipeline for a 2027 completion and utilizing the Habshan-Fujairah Pipeline, while planning a new port and container terminal on the Arabian Sea. Saudi Arabia has diverted exports through its East-West pipeline to the Red Sea and is considering expanding that capacity to 9 million barrels per day. Meanwhile, Iraq is building the 435-mile Basra-Haditha pipeline to connect southern oil fields to Jordan, Syria, and Turkey.

Supporting these efforts, the United States is backing the reconstruction of the defunct Kirkuk-Baniyas pipeline to transport Iraqi crude to the Mediterranean coast. The U.S. State Department expects American firms, including Chevron, to participate in the rehabilitation. Despite these bypass efforts, Iran has threatened to use Houthi allies in Yemen to block the Bab el-Mandeb Strait. This escalation follows Houthi missile strikes on Saudi Arabia and a Yemeni government bombing of a runway at Sanaa International Airport to block Iranian aircraft.