economy
April 3, 2026
Gulf Countries Considering New Oil Export Routes
The region is discussing the expansion of existing capacity, including the Saudi Arabian East-West oil pipeline
TL;DR
- Gulf countries are considering building oil pipelines to bypass the Strait of Hormuz due to conflict with Iran.
- New routes could reduce dependence on the strait but are costly and would take years.
- Expansion of existing capacity, like Saudi Arabia's East-West oil pipeline, is also being discussed.
- Previous similar projects were postponed due to high costs and complexity.
- The current crisis has increased interest in alternative export routes.
- Decisions depend on the development of the situation around the Strait of Hormuz.
- The US and Israel launched a military operation against Iran on February 28.
- Iran retaliated with strikes against Israel and US facilities in several countries.
- Iran closed the Strait of Hormuz to vessels linked to the US, Israel, and their allies.
- Several tankers were attacked for transiting the strait without permission.
- Iran announced it would allow friendly countries to pass through the Strait of Hormuz.
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