Middle Eastern oil producers are accelerating at least seven pipeline projects to bypass the Strait of Hormuz after Iran-backed Houthi rebels attacked two Saudi tankers in the Red Sea on Thursday. Brent crude surged past $100 a barrel as the conflict threatened supply routes that once carried roughly 15 million barrels daily.
New infrastructure could divert nearly 60 percent of Gulf exports around the strait. Abu Dhabi is rushing a $3 billion pipeline to Fujairah, while Iraq pursues routes to Turkey, Syria and Jordan. Existing bypass capacity stood at 3.5 to 5.5 million barrels per day before the war.
Goldman Sachs estimates the projects will add 3.8 million barrels of daily capacity by end-2027 and 7.3 million by late 2028. The Fujairah line is half-built and expected by mid-2027, though earlier completion targets remain uncertain.