Gulf states scramble for Strait of Hormuz alternative

Months of blockades and uncertainty have pushed energy exporters to seek alternative routes for bypassing the Strait of Hormuz. Iranian officials insisted on Iran not closing the waterway unless the US complied with a June framework agreement and offered compensation. US President Donald Trump said the US Navy already controls the strait, which is a critical oil shipping route carrying around 20% of global crude exports from the Persian Gulf.

Saudi Arabia has successfully redirected substantial volumes away from Hormuz, while the UAE has had less success. The US-Iran war has highlighted the importance of alternative shipping lanes through the Red Sea. Saudi Arabia uses the East-West Pipeline to ship crude from its eastern oil fields to the Red Sea port of Yanbu, replacing roughly 61% of the volume lost on the Persian Gulf side.

The UAE is exploring additional capacity alongside its Abu Dhabi Crude Oil Pipeline (ADCOP), but it faces physical capacity limitations and vulnerability to attacks. Alternative projects, such as new pipelines connecting Iraq with Oman and Jordan, as well as longer sea routes around the African continent, are being discussed, but they would be expensive and take years to build.

The Red Sea route also has its own security risks, as ships must pass through Bab al-Mandab, where Houthi attacks have threatened commercial shipping. Israeli Prime Minister Benjamin Netanyahu has advocated for alternative routes through the Arabian Peninsula to Mediterranean ports, but the problem of bypassing Hormuz remains a significant challenge.