Gulf oil producers race to bypass Hormuz with pipelines and a new port
With Iran–linked attacks disrupting traffic through the Strait of Hormuz, Gulf oil producers are rushing to build pipelines and a new port to bypass the chokepoint. The UAE’s 252-mile West-East Pipeline and Iraq’s Basra–Haditha line could move substantial Gulf crude overland, and Goldman Sachs projects bypass capacity of up to 7.3 million barrels per day by 2028, potentially diverting about 45% of pre‑war Persian Gulf exports by 2027. Saudi Arabia is weighing a Red Sea pipeline expansion, while Dubai eyeing a new Arabian Sea port to further reduce Hormuz dependence; nonetheless, Hormuz will remain a major conduit for 7–9 million barrels per day amid regional instability such as Houthi threats near Bab el‑Mandeb.
