Gulf states are spending billions of dollars to find new routes to global markets.
Gulf states are spending billions of dollars to find new routes to global markets.
7-23-2026
A report by the Times of India on Thursday confirmed that for decades, the Strait of Hormuz has been the world’s most important waterway for oil transport, with millions of barrels of crude oil passing through it daily. However, frequent disruptions to global oil supplies have revealed the fragility of this dependence, prompting Gulf states to pursue an ambitious network of pipelines designed to transport oil without relying on this narrow waterway.
The report, translated by Al-Maalomah News Agency, stated that “from the UAE to Iraq, governments and state-owned energy companies are accelerating multi-billion-dollar projects to create alternative export routes connecting oil fields to ports on the Gulf of Oman, the Red Sea, and the Mediterranean. According to government officials, oil companies, and analysts, at least seven major pipeline projects are either under construction, in the planning stages, or under discussion.”
It added that “before the war, approximately 15 million barrels of Arabian Gulf oil passed through the Strait of Hormuz daily. Over the next few years, a significant portion of these supplies could be transported via these new routes, reducing the region’s reliance on a route running alongside the Iranian coast.”
He added that “the urgent need has increased with the continued blockade of the vital Strait of Hormuz and rising oil prices. Although alternative routes are not immune to disruptions, Gulf producers increasingly see them as essential to protecting their exports.”
The report explained that “even these alternatives face risks. This week, Ansar Allah announced a blockade on Saudi-linked ships attempting to cross the Red Sea, confirming that bypassing the Strait of Hormuz does not guarantee safe passage. Nevertheless, Gulf producers believe diversification is necessary despite the potential for longer shipping routes and higher transportation costs.”
“Heavy reliance on the Strait of Hormuz is no longer a wise long-term strategy,” said Victoria Grabenfoger, principal researcher at data and analytics firm Kpler. Goldman Sachs analysts estimate that planned diversion projects could move 3.8 million barrels of oil per day by the end of next year, rising to 7.3 million barrels per day by the end of 2028. This would protect roughly 60 percent of pre-war Gulf oil exports, which stood at 23 million barrels per day, from any disruption in the Strait of Hormuz.
almaalomah.me
