Gulf countries are reconsidering pipeline projects that would bypass the critical Strait of Hormuz as the latest conflict revives concerns over the region’s dependence on one of the world’s most important oil and gas chokepoints, according to a Financial Times (FT) report on Thursday.
The renewed debate reflects growing concern that prolonged Iranian control or disruption in the strait could leave Gulf exporters exposed, pushing officials and industry executives to reconsider options that were once viewed as too costly or too difficult to implement.
The current crisis has reinforced the strategic value of Saudi Arabia's East-West pipeline, a 1,200-kilometer route that carries crude to the Red Sea port of Yanbu and allows exports to avoid Hormuz entirely. One senior Gulf energy executive described the pipeline to the FT as looking "like a genius masterstroke" in retrospect.
Saudi Aramco CEO Amin Nasser also highlighted the line's importance, saying it is the "main route that we are capitalizing on right now,” as the kingdom weighs whether to expand its capacity further or develop additional export routes and terminals on the Red Sea coast.
The report said possible long-term options could include broader trade corridors stretching from India through the Gulf to Europe, while some executives argued that pipelines to Mediterranean outlets will eventually be built. Yossi Abu, CEO of Israel’s NewMed Energy, said: "People need to control their own destinies, with their friends."
Still, industry executives warned that the obstacles remain severe. Christopher Bush, CEO of Lebanon-based Cat Group, said replicating Saudi Arabia's East-West pipeline today would cost at least $5 billion, while more complex routes from Iraq through Jordan, Syria, or Türkiye could require $15 billion to $20 billion.
Bush said security risks in Iraq remain substantial, citing unexploded bombs and the presence of militants, while routes to Oman would face major engineering challenges across desert and mountain terrain. He also said political disputes over ownership, operation, and control of flows would complicate any regional network.
In the near-term, the most realistic option may be to expand existing infrastructure, including Saudi Arabia’s East-West pipeline and Abu Dhabi’s route to Fujairah, rather than pursuing entirely new cross-border systems. Bush said Gulf policymakers are now treating the issue as urgent, adding, "You have a lot of smart minds looking at all of this now. It is a big problem."
The U.S.-Israel war with Iran and rising tensions in the Strait of Hormuz have disrupted regional energy flows, contributing to supply concerns and upward pressure on global prices. On March 2, Iran announced restrictions on navigation in the strategic waterway, warning it could target vessels transiting without coordination.
About 20% of the global oil supply passes through the strait daily, and heightened insecurity has driven up oil prices and shipping and insurance costs.