Middle East oil producers step up plans to bypass the Strait of Hormuz
Summary
Countries in the Middle East are building new pipelines to avoid shipping oil through the Strait of Hormuz, a narrow sea passage near Iran. This move comes as a response to risks of disruption and rising oil prices, with several major pipeline projects under construction or planning to send oil to ports on the Red Sea and Gulf of Oman instead.Key Facts
- About 15 million barrels of oil used to pass daily through the Strait of Hormuz before the Iran war.
- Oil prices have risen above $100 per barrel for Brent Crude amid tensions around the strait.
- Gulf countries are investing billions of dollars in pipeline projects to bypass the strait.
- At least seven major pipeline projects are underway or being planned.
- Saudi Arabia's East-West pipeline, built in the 1980s, carries oil from its east coast to the Red Sea as an alternative route.
- The UAE is expanding oil exports through Fujairah on the Gulf of Oman with a new $3 billion pipeline project.
- Yemen’s Houthi rebels have recently attacked Saudi oil tankers and pipelines on alternative routes.
- Iraq is planning pipelines to export oil from its southern fields to ports in Turkey and Syria to reduce reliance on Hormuz.
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