Gulf countries accelerate the development of alternative oil routes as the dual blockade of the Strait of Hormuz and Bab-el-Mandeb forces transformation

智通财经2026/09/15 01:01

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The ongoing blockade of two major shipping lanes, the Strait of Hormuz and the Bab al-Mandeb, is forcing Gulf countries to accelerate the search for alternative oil export routes. According to International Energy Agency data, oil and oil products transported through the Strait of Hormuz drop sharply from 21 million barrels per day in the fourth quarter of 2025 to 5 million barrels per day in the second quarter of 2026. This decline is prompting major exporters such as Saudi Arabia, the UAE, and Iraq to speed up efforts for route diversification.
Saudi Arabia’s main alternative route has recently faced a double setback—Houthi forces occupying the Bab al-Mandeb Strait, and drone attacks from Iraq temporarily shutting down the east-west oil pipeline. This pipeline previously allowed large amounts of crude oil to be rerouted from the Strait of Hormuz; Saudi Aramco reported that within a few months, throughput soared from 2 million barrels per day to full capacity at 7 million barrels per day. Currently, the only alternative export solution for Saudi Arabia is via the Suez Canal and the SUMED pipeline, but ships heading to Asia must detour around the Cape of Good Hope, significantly increasing travel time and transport costs.
The UAE has accelerated its oil transport via the ADCOP pipeline. This 400-kilometer pipeline connects the Habshan oil processing facilities on the Persian Gulf coast with Fujairah on the far side of the Strait of Hormuz, and throughput has risen from 1.1 million barrels per day before the blockade to the operating limit of 1.8 million barrels per day. In May, the UAE government announced plans to build a new pipeline, expected to be completed in 2027, which will double the capacity at that time.
Iraq is one of the countries most severely affected by the Strait of Hormuz blockade, with pre-war daily exports reaching 3.3 million barrels per day. With U.S. support, the White House announced in July that it supports Chevron’s participation in a major project, planning to send up to 2 million barrels of crude oil per day from Basra to the Syrian port of Baniyas. Meanwhile, Baghdad and Turkey have reached an agreement to restart the pipeline connecting the Kirkuk oilfields and the port of Ceyhan.
Energy market experts point out that “there is no absolutely secure alternative maritime route”; Houthi attacks on Red Sea merchant vessels have made this clear. However, they believe that route diversification is necessary, and Gulf countries have long been aware of this vulnerability, consistently investing to lower risks. The experts anticipate that even if the U.S. and Iran reach a peace agreement, these long-term projects will remain relevant and may reinforce the political rationale to continue them.
Middle East analyst Massab Al-Alusi warns that Iran and its allies in Iraq may “block” Iraq’s new route in the same way they disrupted Saudi pipeline projects. He notes that some members of the Popular Mobilization Forces still harbor intense hostility toward Syria’s new government, viewing relations with Damascus through a sectarian lens. Both Iraq and Syria hope that Washington’s interests will help protect their infrastructure and strengthen these increasingly essential alternative export routes.

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Gulf countries accelerate the development of alternative oil routes as the dual blockade of the Strait of Hormuz and Bab-el-Mandeb forces transformation

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