Gulf states, including the United Arab Emirates, are in talks to develop oil pipeline projects to bypass the Strait of Hormuz [1].
These negotiations represent a strategic shift to secure energy exports as the region faces prolonged instability. Because the Strait is one of the world's most vital oil transit points, any long-term closure threatens global energy security and price stability.
The discussions come as the Strait of Hormuz has been disrupted for more than three months [1, 3]. Regional oil exporters are seeking to mitigate the risk of export disruptions caused by the ongoing closure or the threat of further closures [1, 2, 5].
One primary alternative under consideration is the development of pipeline links to the Fujairah oil hub in the UAE [2, 4]. By routing oil to Fujairah, exporters can move crude directly into the Indian Ocean, completely avoiding the narrow chokepoint of the Strait [4].
The economic stakes of the disruption are significant. Some estimates suggest oil prices could surge past $150 per barrel if the Strait of Hormuz remains closed [3]. Other reports have referenced oil prices around $100 per barrel in the context of regional strikes [2].
Officials from the Gulf states are weighing the costs and timelines of these infrastructure projects. While pipelines provide a permanent solution to the geography of the Strait, they require massive capital investment and cross-border cooperation. The current disruptions have accelerated the urgency of these "Plan B" trade routes to ensure that regional oil continues to reach global markets regardless of the security situation in the waterway [4].
“Gulf states are in talks to develop oil pipeline projects that would allow exports to bypass the Strait of Hormuz.”
The move toward pipelines indicates that Gulf exporters no longer view the disruption of the Strait of Hormuz as a temporary diplomatic crisis, but as a structural risk. By investing in alternative routes like the Fujairah hub, these nations are attempting to decouple their economic survival from the volatile security dynamics of the narrow waterway, potentially reducing the geopolitical leverage held by those who can block the Strait.
