What's happened
The Gulf states are accelerating pipeline projects to bypass Hormuz as Iran blocks the Strait, while existing routes face strain. Several major lines are nearing completion, with Fujairah and Yanbu expanding capacity; Iraq and Turkey explore alternative export routes. Analysts warn the shift could alter global oil flows and prices.
What's behind the headline?
What this means now
- The Gulf is increasing energy-export resilience by diversifying routes. This reduces single-point risk around Hormuz.
- Pipeline expansions to Fujairah and Yanbu are aimed at increasing capacity by several million barrels per day, with completion target around 2027.
- Iraq is pursuing paths to Basra and Ceyhan to diversify away from Hormuz, supported by U.S. involvement.
- Goldman Sachs and industry analysts expect capacity to grow to 14+ mbpd by 2028, though pipelines do not fully replace Hormuz.
What this implies for readers
- Global oil prices could remain volatile as new routes come online and political tensions persist.
- Consumers and industries may feel price swings even if volumes are redirected through alternate channels.
- News consumers should monitor pipeline progress and regional security conditions for near-term impact.
How we got here
The Strait of Hormuz, used by Gulf producers to reach global markets, has faced disruptions due to Iran-backed actions. In response, Gulf states have long pursued alternative routes, including pipelines to Fujairah on the Gulf of Oman and to Yanbu on the Red Sea. The war and blockades have intensified reliance on these routes, with several projects advancing in the 2020s.
Our analysis
Independent, AP News, CNBC, CNBC quotes highlight that while pipelines diversify export routes, Hormuz remains vulnerable. Independent notes Yanbu and Fujairah expansions; AP cites multiple Gulf projects; CNBC says seven pipelines in play with capacity potentially reaching 14 mbpd by 2028.
Go deeper
- Will these pipelines meaningfully reduce Hormuz exposure for global oil markets?
- Who is financing and building the new routes, and what are the security risks?
- What will be the short-term effect on oil prices if one route is disrupted again?
More on these topics
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Iran (Islamic Republic of Iran) - Country in the Middle East
Iran, also called Persia, and officially the Islamic Republic of Iran, is a country in Western Asia. It is bordered to the northwest by Armenia and Azerbaijan, to the north by the Caspian Sea, to the northeast by Turkmenistan, to the east by Afghanistan a
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Yemen - Country in the Middle East
Yemen, officially the Republic of Yemen, is a country at the southern end of the Arabian Peninsula in Western Asia. It is the second-largest Arab sovereign state in the peninsula, occupying 527,970 square kilometres.
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Yanbu - City in Saudi Arabia
Yanbu, also known simply as Yambu or Yenbo, is a city in the Al Madinah Province of western Saudi Arabia. It is approximately 300 kilometers northwest of Jeddah. The population is 222,360.
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Strait of Hormuz - Strait
The Strait of Hormuz is a strait between the Persian Gulf and the Gulf of Oman. It provides the only sea passage from the Persian Gulf to the open ocean and is one of the world's most strategically important choke points.
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Houthis
The Houthi movement, officially called Ansar Allah and colloquially simply Houthis, is an Islamic political and armed movement that emerged from Sa'dah in northern Yemen in the 1990s.
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Red Sea - Inlet
The Red Sea is a seawater inlet of the Indian Ocean, lying between Africa and Asia. The connection to the ocean is in the south through the Bab el Mandeb strait and the Gulf of Aden.
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Saudi Arabia - Country in the Middle East
Saudi Arabia, officially the Kingdom of Saudi Arabia, is a country in Western Asia constituting the bulk of the Arabian Peninsula.
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Iraq - Country in the Middle East
Iraq, officially the Republic of Iraq, is a country in Western Asia, bordered by Turkey to the north, Iran to the east, Kuwait to the southeast, Saudi Arabia to the south, Jordan to the southwest and Syria to the west.
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Suez Canal - Geographical feature
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Syria - Country in the Middle East
Syria, officially the Syrian Arab Republic, is a country in Western Asia, bordering Lebanon to the southwest, the Mediterranean Sea to the west, Turkey to the north, Iraq to the east, Jordan to the south, and Israel to the southwest.
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Basra - Capital of Basra Governorate, in southern Iraq
Basra (Arabic: ٱلْبَصْرَة, romanized: al-Baṣrah) or Basrah is a port city in southern Iraq. It is the capital of the eponymous Basra Governorate, as well as the third largest city in Iraq overall, behind Baghdad and Mosul. Located near the Ira
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Gulf of Oman - Gulf
The Gulf of Oman or Sea of Oman, also known as Makran, is a gulf that connects the Arabian Sea with the Strait of Hormuz, which then runs to the Persian Gulf.
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Mediterranean Sea - Sea
The Mediterranean Sea is a sea connected to the Atlantic Ocean, surrounded by the Mediterranean Basin and almost completely enclosed by land: on the north by Southern Europe and Anatolia, on the south by North Africa, and on the east by the Levant.
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United Arab Emirates - Country in the Middle East
The United Arab Emirates, sometimes simply called the Emirates, is a sovereign state in Western Asia at the northeast end of the Arabian Peninsula on the Persian Gulf, bordering Oman to the east and Saudi Arabia to the south and west, as well as sharing m
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Ceyhan - City in Turkey
Ceyhan is a city and a district in the Adana Province, in southern Turkey, 43 km east of Adana. With a population of over 157,000, it is the largest district of the province, outside the city of Adana.
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Goldman Sachs - Investment banking company
The Goldman Sachs Group, Inc., is an American multinational investment bank and financial services company headquartered in New York City.
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Abqaiq - Saudi Aramco gated community
Abqaiq (Arabic: بقيق, romanized: Biqayq) is a city in the Eastern Province of Saudi Arabia, located in the desert 60 km southwest of the Dhahran-Dammam-Khobar metropolitan area, and north of the Rub' al-Khali, the second largest sand desert in the wor