A strategic Gulf move to reduce dependence on the Strait of Hormuz
Amid escalating geopolitical tensions in the Middle East, the Financial Times revealed that Gulf Arab states are seriously considering reassessing their strategic energy export plans. These plans aim to establish new energy pipelines to reduce reliance on the Strait of Hormuz, one of the world's most strategic waterways, amid growing concerns about potential security threats that could disrupt maritime traffic and impact energy supplies.
Historical context and strategic importance of the Strait of Hormuz
Historically, the Strait of Hormuz has been a vital artery of the global economy, with roughly one-fifth of the world’s oil consumption passing through it, along with vast quantities of liquefied natural gas. However, this heavy reliance has also made it a strategic vulnerability. Concerns about the strait’s security date back to the 1980s, during the “Tanker War,” which coincided with the Iran-Iraq War and directly threatened global energy supplies. This historical context has prompted countries like Saudi Arabia to consider secure alternatives for decades.
East-West Line: A Preemptive Strategic Strike
Energy officials and executives have explained that building new pipelines may be the only way for Gulf states to reduce their dependence on the Strait of Hormuz and avoid any potential disruptions. While these projects are costly, politically complex, and require many years to complete, past experience has proven their effectiveness. In this context, a senior Gulf energy executive described the Saudi pipeline as a "genius move.".
The current tensions have once again highlighted the strategic importance of Saudi Arabia’s 1,200-kilometer East-West (Petroline) pipeline. Built in the 1980s in response to fears of the Strait of Hormuz being closed, it is now a vital artery transporting approximately 7 million barrels per day to the port of Yanbu on the Red Sea, bypassing the Strait entirely. Saudi Aramco CEO Amin Nasser recently confirmed to analysts that “the East-West pipeline is our primary route right now.”.
Expected impact and shift towards practical reality
Regionally and internationally, this approach is of paramount importance. Locally and regionally, it will ensure the uninterrupted flow of oil revenues to the Gulf states and protect their economies from geopolitical shocks. Internationally, it will contribute to the stability of global energy markets and prevent the sharp increases in oil prices that often accompany threats of closing the Strait of Hormuz.
Despite previous plans to build regional pipelines faltering due to exorbitant costs, Maysoun Kafafi, a senior advisor on Middle East programs at the Atlantic Council, noted that the general mood in the Gulf has shifted. She said, “I sense a shift from hypothetical scenarios to practical reality; everyone is looking at the same map and arriving at the same conclusions.”.
A vision for the future: Integrated trade corridors
Kafafi added that a more flexible option might not be a single pipeline, but rather an integrated network of corridors, despite the challenges of implementing this option. In the long term, the new pipelines are likely to become part of broader trade corridors through which multiple goods, not just oil and gas, are transported, thus enhancing regional economic integration and creating a resilient infrastructure capable of meeting future challenges.
