Gulf States: Looking for an alternative route to the Strait of Hormuz

Gulf states are seeking alternative routes for their oil exports following prolonged blockades of the Strait of Hormuz, a critical waterway between Iran and Oman. The narrow passage has historically transported around 20 percent of global oil exports to Europe, Asia, and North America before the outbreak of the Iran conflict. Despite a signed agreement between the United States and Iran to lift the blockade, tankers remain unable to navigate freely through the strait. Saudi Arabia has increasingly relied on alternative transport routes via the Red Sea. Crude oil flows through the East-West pipeline from eastern oil fields in the kingdom to the port city of Yanbu on the Red Sea, ensuring continued oil exports. According to the monitoring platform IMF PortWatch, Saudi Arabian exports from the Gulf coast dropped from 47.5 million tons during the same period last year to 6.3 million tons in April and May. Meanwhile, exports via the Red Sea rose from 29.6 million to 54.8 million tons, with the difference of 25.2 million tons accounting for approximately 61 percent of the east-side exports. The Houthi rebels, supported by Iran, have imposed a naval blockade against Saudi Arabia, though its initial effects were unclear. The armed group operates along the northern side of the Bab al-Mandab Strait at the southern end of the Red Sea. In July, the Houthi rebels claimed an attack on the Saudi oil tanker "Encelia" in the Red Sea, citing violation of their declared blockade. The Shia rebels justified the attack, stating the vessel had breached their imposed restrictions. The United Arab Emirates (UAE) aims to construct an additional East-West pipeline alongside the existing Abu Dhabi Crude Oil Pipeline (ADCOP) connecting the oil and gas field of Habshan in the Persian Gulf to the port city of Fujairah on the Gulf of Oman. This pipeline features crucial deep-water facilities leading directly into the Indian Ocean. Although Fujairah lies outside the Persian Gulf, the city remains close to Iran. The harbor and container ships have already faced drone attacks from Iran, resulting in a significant decline in cargo turnover. According to IMF PortWatch, goods transshipped in Fujairah decreased by 80 percent compared to the same period last year in April and May. Calls are growing for regional pipeline alliances linking multiple countries, such as a proposed pipeline from Basra in southern Iraq to the Jordanian port city of Aqaba on the Red Sea. However, this project would cost up to $10 billion and take at least five years to complete, according to economist Hassan Mansour. Another proposed parallel pipeline stretching along the Persian Gulf from Basra through Kuwait, UAE to Oman on the Indian Ocean would reportedly cost twice as much. Mansour noted that all coastal nations must invest heavily due to the threat posed by Iran. He added that these projects could not immediately resolve the pressing issue facing the international oil market. Political scientist Rahman Ghahremanpour in Tehran stated that pipelines can reduce dependence on the Strait of Hormuz but remain vulnerable in times of war. Iranian drones and Houthi militias could reach both the Omani port city of Fujairah and the Red Sea. "Ports, terminals, and pipelines can also be attacked," he warned. Countries such as Qatar, Kuwait, and Bahrain, which exclusively export energy products through seaports in the Persian Gulf, would still rely on the Strait of Hormuz. The ongoing search for alternative routes highlights the region’s efforts to mitigate risks associated with potential disruptions in one of the world’s most vital oil transit corridors.