Hormuz crisis sparks pipeline boom across Middle East

Middle Eastern oil producers are accelerating pipeline projects to bypass the Strait of Hormuz after the recent blockade exposed the vulnerability of global energy flows, OilPrice.com reported. 

Saudi Arabia, the UAE, and Iraq are leading efforts to expand infrastructure, while longer‑term plans envision new routes to Mediterranean ports.

Saudi Arabia’s foresight pays off

According to OilPrice.com’s Irina Slav, Saudi Arabia successfully rerouted up to 7 million barrels per day through its East‑West pipeline during the crisis, sending crude from the Persian Gulf to the Red Sea port of Yanbu. 

The pipeline, built in the 1980s precisely to mitigate Hormuz risks, became a lifeline when Iran closed the strait earlier this year.

The only constraint was Yanbu’s loading capacity, which Aramco is expected to expand.

Reuters energy columnist Ron Bousso noted that Saudi Arabia’s decision decades ago to build the East‑West pipeline was vindicated by the blockade, which paralysed a fifth of global LNG and crude flows.

UAE doubles down on Fujairah

The United Arab Emirates, which already operates a pipeline to Fujairah outside Hormuz, is now planning to double capacity from 1.8 million barrels per day to 3.6 million. 

The new pipeline is scheduled to be ready by the end of next year, reflecting Abu Dhabi’s urgency to insulate itself from future disruptions. 

The UAE also aims to expand its eastern ports, including Dibba and Khor Fakkan, to reduce reliance on Hormuz entirely.

Iraq’s uphill battle

Iraq, heavily dependent on Gulf exports, saw shipments collapse from 3.3 million barrels per day to barely over 1 million during the blockade, triggering a sharp revenue decline. 

Baghdad is now prioritising domestic energy security and expanding the Kirkuk‑Ceyhan pipeline, which currently handles 200,000 barrels daily.

Plans are underway to boost capacity to 770,000 barrels per day within months, according to the report.

Iraq is also considering new pipelines to Syria and Jordan, aiming to connect northern fields to Mediterranean ports and bypass Hormuz altogether.

Regional pipeline vision

Beyond national projects, a broader initiative known as the Four Seas Initiative envisions linking Middle Eastern oil fields to Mediterranean ports via Turkey and Syria. 

The New Lines Institute said the plan could deliver “European energy sovereignty from Russian and Iranian dependence” and support Syrian reconstruction through transit revenues.

Turkey, already positioning itself as a natural gas hub, sees the initiative as complementary to its strategy, though it also involves transiting Russian gas.

The estimated cost is $10 billion (approx. R 171,2 billion), which exporters may consider worthwhile to reduce geopolitical risks.

Unlike Saudi Arabia, the UAE, Iraq, Kuwait and Qatar lack independent pipeline infrastructure.

They would need to rely on neighbors’ networks to bypass Hormuz, a problematic prospect given regional tensions.

For Qatar, dependence on Saudi or Emirati pipelines is far from ideal due to strained relations.

Outlook

While the immediate risk of another Hormuz closure is slim unless hostilities resume, the crisis has permanently reshaped energy security thinking in the Gulf. 

Producers are determined to ensure that a disruption of this scale never happens again. 

As OilPrice.com’s Irina Slav concluded, the blockade has sparked a pipeline boom across the Middle East, with projects designed to safeguard exports and stabilize global energy markets.