Gulf oil producers are accelerating pipeline, port and rail projects to reduce dependence on the Strait of Hormuz as geopolitical tensions raise the risk of shipping disruptions. 

Existing routes, including the UAE’s 1.5-million-barrel-per-day Habshan–Fujairah pipeline and Saudi Arabia’s 5-million-barrel-per-day Petroline to Yanbu, are being reassessed as key emergency alternatives. New cross-border pipelines, expanded terminals and rail corridors to Arabian Sea ports are also under consideration.

Industry estimates suggest that, if completed, the projects could allow more than 10 million barrels of crude per day, about 60% of current Hormuz traffic, to bypass the strait. Ports such as Fujairah, Yanbu, Sohar and Duqm could gain importance as energy hubs. 

However, shorter shipping routes may reduce demand for long-haul VLCC voyages and lower global tanker tonne-mile demand over time.