Middle East Nations Rush to Diversify Oil Exports Amid Strait of Hormuz Uncertainty

The Strait of Hormuz has become a critical chokepoint in global oil trade due to regional tensions, prompting efforts to bypass it. Analysts at Goldman Sachs estimate that seven new pipelines are under discussion in the Middle East, which could carry approximately 14 million barrels per day by the end of 2028, roughly 60% of the oil previously shipped through the strait.

Saudi Arabia is also expanding its capacity to transport crude from the Red Sea coast via a pipeline that can currently handle 7 million barrels per day. This will allow for some 5 million barrels per day to be exported, despite the blockage of the Strait.

The UAE has fast-tracked construction on another West-East pipeline set to bypass the Strait by 2027, doubling its export capacity and reducing reliance on Hormuz. Iraq is also exploring alternative routes through Syria and Turkey due to limited pipeline options and potential Iranian projectile threats to its Basra port infrastructure.