From Syria to UAE, the race to bypass Strait of Hormuz is on

What Happened

Arab oil producers are accelerating the construction of pipeline infrastructure to bypass the Strait of Hormuz, a critical maritime chokepoint where Iran maintains a significant presence. The United Arab Emirates is currently expanding its export capacity via a second pipeline to the port of Fujairah, with completion targeted for 2027. Concurrently, Iraq signed an agreement with Syria in July to rehabilitate a pipeline connecting northern Iraqi oil fields to the Mediterranean port of Baniyas, a project reportedly supported by the United States and involving a consortium including Chevron and TI Capital.

Key Actors

Why It Matters

The shift toward land-based pipeline infrastructure represents a strategic effort by Gulf states to mitigate the risk of supply disruptions in the Strait of Hormuz, where Iran has historically exerted influence over global energy flows. This reconfiguration of oil transit routes alters the regional economic landscape, potentially marginalizing states like Kuwait and Bahrain that lack similar bypass capabilities, while cementing the status of Saudi Arabia and the United Arab Emirates as more secure energy suppliers.

Watch For

Monitor the 2027 completion date for the United Arab Emirates' second Fujairah pipeline and further developments regarding the Iraq-Syria pipeline rehabilitation project. Additionally, observe any official announcements from Saudi Arabia regarding the expansion of the East-West Pipeline's capacity, which currently handles approximately four million barrels per day.