Middle East Oil Producers Plan Strait of Hormuz Bypass

Oil producers in the Middle East are planning to bypass the Strait of Hormuz, a crucial waterway through which 15 million barrels of Persian Gulf oil were shipped daily before the war in Iran. The plans aim to reduce dependence on the strait, which has been vulnerable to disruptions caused by Iran's influence.

At least seven major pipeline projects are underway or being discussed, according to government officials and analysts. These include a $3 billion project by the state-owned oil company of Abu Dhabi to build a 300-kilometer pipeline to Fujairah, which will increase oil supplied to the port by over 1.2 million barrels per day.

The projects are expected to carry 3.8 million barrels of oil a day by the end of next year and 7.3 million barrels per day by the end of 2028, according to Goldman Sachs analysts. This would insulate around 60% of the Gulf's total pre-war exports from a Hormuz cutoff.

However, some alternative routes may be vulnerable to attacks by Houthi rebels in Yemen, who have successfully disrupted shipping at the Bab el-Mandeb Strait before.