Washington is pushing Gulf oil producers to build and expand alternative energy transport routes that can reduce dependence on the Strait of Hormuz, one of the world’s most important oil chokepoints. The call comes after months of disruption to energy shipments and growing concern in the United States and Gulf states over the vulnerability of a single maritime gateway.
Jarrod Agen, executive director of the U.S. Energy Dominance Council, said Gulf countries should develop multiple routes for exporting crude that can bypass Hormuz. According to reporting from The National, Washington sees Saudi Arabia and the United Arab Emirates as key partners in expanding this infrastructure.
Why the Strait of Hormuz matters
The Strait of Hormuz lies between Iran and Oman and connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. At its narrowest point it is only about 21 nautical miles wide, with relatively narrow navigable channels.
The International Energy Agency says an average of about 20 million barrels of crude oil and oil products a day moved through Hormuz in 2025, representing roughly a quarter of global seaborne oil trade. The U.S. Energy Information Administration reported that oil flows averaged 20.9 million barrels per day in the first quarter of 2025 and 21.0 million barrels per day in the second quarter of 2025.
That scale makes Hormuz critical not only for Gulf producers but also for major Asian energy importers. Any prolonged disruption can affect crude supplies, shipping costs, insurance premiums and ultimately fuel prices in markets far beyond the Middle East.
U.S. wants more oil routes across the Gulf
The latest U.S. push focuses on building a more diversified energy transportation network rather than relying on a single sea passage. The objective is to create additional pipelines, terminals and export corridors that can move oil toward the Gulf of Oman, the Red Sea or the Mediterranean without requiring every shipment to pass through Hormuz.
The initiative is part of a wider U.S. effort to strengthen energy security and reduce the strategic leverage created by vulnerable maritime chokepoints. U.S. officials have also discussed financial support for rebuilding and diversifying Gulf energy infrastructure.
Saudi Arabia already has a major alternative
Saudi Arabia has the East-West Pipeline, which carries crude from the country’s eastern oil-producing region to Yanbu on the Red Sea. The route gives Saudi Arabia a way to move oil toward a port outside the Persian Gulf and avoid Hormuz for part of its exports.
However, bypassing Hormuz does not eliminate all security risks. Oil transported to the Red Sea can face vulnerabilities around the Bab el-Mandeb and wider Red Sea shipping corridor. Recent attacks and regional instability have demonstrated that alternative routes can also become targets.
UAE expands its Hormuz bypass capacity
The United Arab Emirates has another important option: the Habshan-Fujairah pipeline. It transports crude from Abu Dhabi’s oil fields to Fujairah on the Gulf of Oman, allowing oil to reach tankers without crossing the Strait of Hormuz.
Industry reporting says the UAE is also expanding the West-East crude oil pipeline, with the goal of increasing export capacity through Fujairah. Such projects could make the UAE less dependent on the waterway even if Hormuz eventually returns to normal operation.
Iraq and other countries explore new corridors
The search for alternatives extends beyond Saudi Arabia and the UAE. Iraq has been linked to renewed plans for pipeline infrastructure that could connect southern oil production with export outlets outside the Gulf, including the proposed Basra-Aqaba corridor.
These projects are technically and financially complicated. Long-distance pipelines require major capital investment, years of construction, land agreements and security arrangements. They also need reliable export terminals and buyers at the other end of the route.
Can pipelines replace Hormuz?
Not completely, at least in the short term. The EIA says existing pipelines in Saudi Arabia and the UAE provide alternative capacity of about 4.7 million barrels per day. That is substantial, but far below the volumes that historically have moved through Hormuz.
The challenge is even greater for countries such as Kuwait, Qatar, Bahrain and Iran, whose energy exports depend heavily on the strait. The IEA notes that bypass options are limited and that a major disruption would have significant consequences for global oil markets.
Energy security comes with a price
Building alternative pipelines and export terminals could improve resilience, but it would not make Gulf energy infrastructure immune to geopolitical risk. Pipelines are fixed assets and can themselves become targets for missiles, drones or sabotage. Red Sea routes can also face security problems.
For oil producers, the economic question is equally important. A new route must be able to move large volumes at a competitive cost. If transport through a new corridor is significantly more expensive than shipping through Hormuz during normal conditions, producers may use it mainly as strategic backup capacity rather than as their primary export route.
What it means for global oil markets
For consumers and financial markets, the most important issue is reliability. Greater pipeline and terminal capacity could reduce the amount of oil immediately exposed to a disruption at Hormuz. That could help limit some of the price shock associated with future interruptions.
At the same time, the transition will take years. Until enough alternative capacity is built, Hormuz will remain a central part of the global energy system. The EIA’s latest data show how significant the waterway remains, even as flows have changed sharply during the current regional crisis.
What this means for India
India is closely connected to developments in the Gulf because the country imports a large share of its crude oil and remains a major Asian energy market. A more diversified Gulf export network could reduce the risk of a sudden supply bottleneck, although the final impact on Indian fuel prices would also depend on global crude prices, freight rates, insurance costs, the rupee-dollar exchange rate and domestic taxes.
Readers can follow related developments in NewsNationOnline’s International News section and our coverage of the Strait of Hormuz. We have also reported on U.S.-Iran discussions over reopening the Strait of Hormuz and the potential impact of Hormuz developments on U.S. stock markets and oil-price volatility.
Key takeaway
The U.S. call for new Gulf oil transport routes reflects a broader shift in energy-security planning. Saudi Arabia and the UAE already have infrastructure that can bypass Hormuz, while additional projects are being discussed or expanded. But the sheer volume historically handled by the strait means that pipelines and alternative ports are likely to supplement, rather than quickly replace, Hormuz.
Sources: U.S. Energy Information Administration; International Energy Agency; The National.
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