The geopolitical volatility surrounding the Strait of Hormuz has prompted a fundamental rethink in the Gulf’s energy logistics. With over 20% of the world’s oil passing through this narrow maritime corridor, recent tensions have revived long-discussed but largely dormant plans: building alternative oil and gas pipelines that bypass Iranian-controlled waters.
The East-West Model Gains New Importance
Saudi Arabia’s East-West pipeline, a 1,200 km conduit from oilfields in the east to the Red Sea port of Yanbu, was constructed in the 1980s at the height of the Iran-Iraq war. It now transports 7 million barrels per day, and amid recent conflict, it has become a model of energy security.
Saudi Aramco’s CEO Amin Nasser recently emphasized the importance of this pipeline as the country’s “main route” for exports during periods of maritime instability. The renewed focus is not limited to capacity optimization. Officials are actively assessing expansion, and even replication of the pipeline, to further shield national exports from regional chokepoints.
Toward a Multi-Nodal Pipeline Network
What distinguishes the current discussions from earlier proposals is scale and urgency. There is a shift from standalone routes to a “web of corridors”, as described by regional analysts. While technically and diplomatically complex, such a network would dramatically reduce Gulf states’ exposure to singular points of failure.
Preliminary concepts include:
- Expanded East-West pipeline capacity
- Additional Saudi Red Sea export terminals, including integration with the Neom megaproject
- New Abu Dhabi pipelines to Fujairah, complementing existing routes
- Transnational networks connecting Iraq to Mediterranean ports via Jordan, Syria, or Turkey
- Corridors through Oman, despite its own geopolitical vulnerabilities
However, these ideas are not without financial and logistical challenges. A modern replica of the East-West pipeline is estimated to cost $5 billion, while multi-country options may require $15–20 billion in investment. These figures exclude the costs of securing routes from militant threats, demining former conflict zones, and navigating complex regulatory and ownership frameworks.
The Strategic Imperative Behind Energy Diversification
The stakes are high. Even temporary disruption in the Strait of Hormuz causes spikes in global oil prices, intensifies insurance premiums for shippers, and sends shockwaves through supply chains. According to the U.S. Energy Information Administration, 21 million barrels per day of oil moved through the strait in 2022—making it the world’s most sensitive oil transit point.
Despite the enormous cost of bypass infrastructure, Gulf states increasingly view this as a strategic necessity, not just an economic choice. “People need to control their own destinies,” said one regional executive, pointing to the importance of onshore energy corridors free from maritime bottlenecks.
Beyond Oil: IMEC and the Future of Regional Trade
The pipeline conversation is also part of a broader economic pivot. Gulf countries are evaluating their role in the India-Middle East-Europe Economic Corridor (IMEC) — a U.S.-backed initiative to create integrated trade infrastructure stretching from South Asia to Europe. While the original IMEC proposal included a pipeline to Haifa, Israel, such plans are now politically complicated.
Nevertheless, energy corridors are increasingly being seen as multi-purpose trade conduits, not just oil pipelines. Integration with rail, fiber-optic, and logistics networks could form the backbone of a new regional economy built on resilience and diversification.
Obstacles Ahead: Security, Politics, and Practicality
Security threats remain a major barrier. Drone attacks have already disrupted ports like Salalah in Oman, and there are unexploded ordnance risks along proposed Iraqi routes. Political complications—such as pipeline ownership, transit rights, and revenue-sharing models—also stand in the way.
Still, the regional tone has changed. A senior advisor at the Atlantic Council noted that discussions have moved from “hypotheticals into operational reality.” While no final decisions have been made, especially as long as the situation in the Strait remains unresolved, it is clear that status quo reliance on maritime transit is being seriously questioned.
What Comes Next?
Saudi Arabia and the UAE are likely to move first by expanding existing domestic infrastructure—options with lower diplomatic friction and quicker timelines. These would increase daily export capacity, reduce insurance risks, and add redundancy.
In parallel, multinational initiatives may take longer but offer greater strategic depth. If successful, they could redraw the logistics map of the Middle East, making the Gulf not just a source of hydrocarbons, but a hub of diversified, secure, and future-oriented infrastructure.