Gulf States Develop Land Routes to Bypass Strait of Hormuz Amid Rising Tensions
The Strait of Hormuz, connecting the Persian Gulf to the Indian Ocean, typically handles about 20% of the world's oil and gas shipments. However, renewed Iranian blockades and U.S. countermeasures have prompted Gulf countries to seek alternative land routes for oil and goods imports and exports. This shift marks a significant change, as maritime transport has long been the backbone of global trade, and replacing it is challenging.
Experts like Prof. Yehoshua Krasna of Tel Aviv University emphasize that while sea transport remains irreplaceable, the increased risks have made investments in land-based alternatives economically viable. Dr. Ilan Gildin notes that the situation in Hormuz is no longer temporary, with infrastructure projects accelerating to reduce dependence on the strait. Iran’s strategic leverage over Hormuz is at its peak but expected to diminish as bypass routes develop.
The United Arab Emirates (UAE) leads these efforts, leveraging its unique geography and the port of Fujairah outside Hormuz. The UAE is expanding an existing oil pipeline from Abu Dhabi to Fujairah from 1.8 million to 3.6 million barrels per day at a cost of $3 billion. It is also accelerating construction of a railway to the Omani port of Sohar and building two new tanker terminals at Fujairah to support both oil exports and essential imports for its 10 million residents.
Saudi Arabia, the world’s largest oil exporter, has suffered production drops from about 10 million barrels per day to between 6.6 and 7.7 million barrels due to Hormuz closures. It relies on the East-West pipeline, which transports up to 7 million barrels daily to the Red Sea, bypassing Hormuz. However, Saudi shipments to Asia must still pass through the Bab al-Mandab strait, where Houthi forces have imposed a naval blockade, complicating logistics. The alternative route around Africa via the Suez Canal is longer and costlier.
Iraq, lacking direct access to the eastern Gulf outside Hormuz, is pursuing new pipelines westward to the Mediterranean. One U.S.-backed project would extend a pipeline from Haditha in western Iraq through Syria to the port of Baniyas, costing $6-8 billion. Turkey proposes linking southern Iraqi oil fields near Basra to Haditha, then onward to the Turkish port of Ceyhan. Current pipelines are insufficient, carrying only about 250,000 barrels per day compared to millions through the Gulf in peaceful times.
Some Gulf states, including Qatar, Kuwait, and Bahrain, remain dependent on Saudi pipelines due to their geographic positions. Kuwait, despite being a natural candidate for connection to Iraq’s Mediterranean routes, remains wary due to historical conflicts. Analysts warn that these shifting energy corridors highlight emerging regional alliances that exclude Israel, which is not part of these new infrastructure plans. This development signals a realignment of Middle Eastern energy and trade networks amid ongoing geopolitical tensions.
