Srinagar, Apr 2 — Gulf countries are reassessing pipeline projects designed to bypass the Strait of Hormuz following disruptions linked to the ongoing US-Israel war with Iran, the Financial Times reported on Thursday, amid rising concern over dependence on the critical energy chokepoint.
Roughly 20 per cent of global oil supply transits the strait daily, and recent tensions — including Iran’s March 2 restrictions on navigation — have heightened fears of supply disruptions, pushing up oil prices, shipping costs and insurance premiums.
Officials and industry executives told the publication that the conflict has revived interest in alternative export routes previously considered too expensive or technically complex. One senior Gulf energy executive described Saudi Arabia’s East-West pipeline as “like a genius masterstroke” in retrospect.
The 1,200-km pipeline, which carries crude from eastern Saudi Arabia to the Red Sea port of Yanbu, has gained renewed strategic value by allowing exports to bypass the Strait of Hormuz entirely.
Saudi Aramco CEO Amin Nasser said the route is currently the “main route that we are capitalising on right now,” adding that the kingdom is assessing whether to expand its capacity and develop additional Red Sea export infrastructure.
The report noted that longer-term proposals include broader trade corridors linking India, the Gulf and Europe, while some industry figures anticipate eventual pipeline connections to Mediterranean outlets.
Yossi Abu, CEO of Israel’s NewMed Energy, noted the shift toward energy autonomy, saying: “People need to control their own destinies, with their friends.”
However, executives cautioned that financial, technical and security barriers remain significant. Christopher Bush, CEO of Lebanon-based Cat Group, estimated that replicating the East-West pipeline would cost at least $5 billion, while more complex cross-border routes from Iraq could require $15–20 billion.
He warned of persistent security risks in Iraq, including unexploded ordnance and militant activity, alongside engineering challenges for routes through Oman’s terrain. Political disputes over ownership and operational control could further complicate regional pipeline networks.
In the near term, expanding existing infrastructure — including Saudi Arabia’s East-West pipeline and Abu Dhabi’s Fujairah route — is seen as more feasible than building entirely new systems.
“You have a lot of smart minds looking at all of this now. It is a big problem,” Bush said.