Gulf States Advance Pipeline Projects to Bypass Strait of Hormuz Amid Regional Tensions
Gulf oil producers are accelerating plans to reduce their reliance on the Strait of Hormuz by developing at least seven major pipeline projects. These projects aim to reroute oil exports through the Red Sea, Gulf of Oman, and the Mediterranean, thereby bypassing the Strait of Hormuz, a critical chokepoint that has been subject to disruptions due to regional tensions, particularly with Iran. The new routes could significantly increase the strategic importance of Africa's Red Sea coastline, involving countries like Egypt, Sudan, Eritrea, and Djibouti. According to Goldman Sachs, these projects could add 3.8 million barrels per day of bypass capacity by the end of 2027, potentially rising to 7.3 million barrels per day by 2028. This shift is driven by the need to mitigate risks associated with the Strait of Hormuz, where tensions have pushed Brent crude prices above $100 per barrel. 
