Nearly 20 million barrels of oil are transported through the Strait of Hormuz every day, accounting for 20 percent of world oil consumption. As regional tensions peak, Iran has threatened to close this chokepoint, posing a threat to energy security. In response, Gulf Cooperation Council (GCC) members have sought other avenues for oil exports to lessen their reliance on the Strait.
To avoid dependence on the Strait of Hormuz, Saudi Arabia and the United Arab Emirates have invested in pipelines that bypass the chokepoint. However, capacity limitations and persistent geopolitical threats make these insufficient to mitigate all effects of any closure to the Strait.
Nearly 20 million barrels of oil are transported through the Strait of Hormuz every day, accounting for 20 percent of world oil consumption.
Perhaps the most notable alternate is Saudi Arabia’s East-West Pipeline (Petroline) that carries oil from the Persian Gulf to the Red Sea port of Yanbu. Despite being the most practical option, this pipeline has only ever run at around half of its capacity, leaving a shortage of over 2.5 million barrels per day as of 2006. The amount of oil being transported via the Strait of Hormuz cannot be entirely offset by Petroline’s capacity, despite continuous efforts to raise it to 7 million barrels per day.
The 250-mile Abu Dhabi to Fujairah pipeline allows the United Arab Emirates to bypass the Strait to transport oil directly to the Arabian Sea. The Emirates have built sizable storage facilities in Fujairah that can hold over 70 million barrels; the pipeline has a daily capacity of about 1.6 million barrels.
New routes are also now possible. Improved Saudi-Omani relations have enabled transport across the land border at Ramlet Khelah, allowing container traffic to bypass the Strait. However, because of infrastructure and geographic constraints, these routes are mainly used for non-oil freight. Iran, of course, has its own bypass, a pipeline between Goreh and Jask Pipeline that the Islamic Republic built in 2021 with the goal of allowing Iran to export oil straight to the Gulf of Oman, avoiding the Strait. However, because of operational and political difficulties, its capacity is barely 300,000 barrels per day, and Iran has not used it since September 2024.
Any disruption of the Strait of Hormuz would disrupt energy supply and could lead to an oil price surge well above $100 per barrel, worsening inflation and economic instability globally. The region’s marine logistics will be made even more difficult by the rising insurance costs and shipping hazards. Although the Gulf Cooperation Council governments have invested to mitigate these risks, these actions are just partial remedies. The fragility of these channels and the possibility of escalation with sabotage of Saudi infrastructure and Emirati oil installations near Fujairah could undercut energy supply for longer.
