Alternative Routes for Middle East Oil and Gas to Bypass the Strait of Hormuz
The Strait of Hormuz is widely regarded as the world's most critical oil chokepoint, but ongoing conflict has severely disrupted shipping, prompting a search for viable alternatives. In the past 24 hours, shipping data indicates only three vessels have navigated the waterway, a stark reduction from normal traffic levels. Before the U.S. and Israel's war on Iran commenced on February 28, the Strait handled approximately one-fifth of global oil and liquefied natural gas supplies.
Current Disruption and Global Impact
More than a dozen tankers managed to pass through after Iran briefly declared the Strait open last Friday. However, a ceasefire between the U.S. and Iran is now in jeopardy following Iran's vow to retaliate for the U.S. seizure of one of its vessels and its refusal to participate in new peace talks. The International Energy Agency has labelled this the largest supply disruption on record, surpassing the combined impact of the 1970s oil shocks and the loss of Russian pipeline gas after Moscow's invasion of Ukraine.
Existing Alternative Export Routes
East–West Pipeline (Saudi Arabia)
Saudi Arabia's 1,200-kilometre East–West pipeline can transport up to seven million barrels per day of crude to the Red Sea port of Yanbu, with effective exports estimated at around 4.5 million barrels per day, contingent on tanker and jetty availability. From Yanbu, shipments can travel to Europe via the Suez Canal or south via the Bab el-Mandeb strait to reach Asia, though this route carries security risks from Yemen's Houthi militants, who have attacked tankers during the Gaza war.
Habshan–Fujairah Pipeline (UAE)
The Abu Dhabi Crude Oil Pipeline runs from Abu Dhabi's Habshan onshore fields to Fujairah on the Gulf of Oman, outside the Strait of Hormuz. Operated by ADNOC and commissioned in 2012, this 360-kilometre pipeline has a capacity of about 1.5 to 1.8 million barrels per day. However, oil loadings at Fujairah have been affected by drone attacks since the Iran war began in late February.
Kirkuk-Ceyhan Pipeline (Iraq-Turkey)
Iraq's main northern export route runs from Kirkuk to Turkey's Mediterranean port of Ceyhan via the Kurdistan region. The pipeline restarted last September after a two-and-a-half-year shutdown following an interim deal between Baghdad and the Kurdistan Regional Government. On March 17, Iraq began pumping 170,000 barrels per day, with plans to increase to 250,000 barrels per day, after Iraq's national oil company SOMO signed export contracts via Turkey, Jordan, and Syria.
Goreh-Jask Pipeline (Iran)
The International Energy Agency noted in its latest oil market report that Iran may be able to utilise the Jask terminal, fed by the one million barrels per day Goreh-Jask pipeline, to bypass the Strait. While the construction of the terminal is not fully complete, a loading from Jask was tested in 2024.
Possible Future Alternative Routes
Iraq–Oman Pipeline
Iraq announced last September that it is considering a pipeline from Basra to Oman’s port of Duqm on the Gulf of Oman. The project remains at an early conceptual stage, with routes under study including an overland line via neighbouring countries or a costly subsea pipeline.
Iraq–Jordan Pipeline
The proposed one million barrels per day pipeline would ship crude from Basra to Jordan's Red Sea port of Aqaba, effectively bypassing the Strait of Hormuz. First proposed in the 1980s and approved in principle in 2022, the project remains stalled due to cost, security, and political hurdles.
Gulf–Sea of Oman Canal
A canal bypassing the Strait of Hormuz, similar in concept to the Suez or Panama Canals, remains purely theoretical. A project to cut through the Hajar Mountains toward Fujairah would face extreme engineering challenges and could cost hundreds of billions of dollars.
