Middle East Producers Plan 7 Pipelines as Iran Threatens Hormuz and Red Sea Oil Routes
Updated
Updated · CNBC · Jul 18
Middle East Producers Plan 7 Pipelines as Iran Threatens Hormuz and Red Sea Oil Routes
3 articles · Updated · CNBC · Jul 18
Summary
Seven pipeline projects are being built or planned across the Middle East to reroute crude exports as Iran stages near-daily tanker attacks in Hormuz and threatens wider disruption.
Iraq has been hit hardest: June output fell more than 50% to 1.9 million bpd from 4.2 million in February, prompting U.S. backing for a rebuilt Kirkuk-Syria Mediterranean pipeline.
The UAE plans to double export capacity outside Hormuz with a second Fujairah line, while Saudi Arabia is weighing a 2 million bpd expansion of its Red Sea pipeline.
Goldman Sachs estimates regional pipeline capacity could exceed 14 million bpd by end-2028—more than 60% of the seven Gulf states' pre-war 23 million bpd exports.
Analysts say the new lines are only a hedge: Iran already cut Saudi Red Sea throughput by 700,000 bpd in April, and the Houthis have threatened to close Bab el-Mandeb.
Are new multi-billion dollar pipelines just creating more vulnerable targets for cheap drone attacks?
As cheap drones overwhelm defenses, what new technology can realistically protect this energy infrastructure?
The 2026 Middle East Energy Crisis: Chokepoint Closures, Bypass Race, and Global Economic Fallout
Overview
The Middle East is facing a severe energy crisis as the closure of the Strait of Hormuz and rising threats to the Bab el-Mandeb Strait disrupt vital oil routes. After failed ceasefire talks with Iran, the U.S. imposed a naval blockade, leaving merchant vessels stranded and forcing Gulf oil producers to urgently seek alternative export paths. Iran rejected U.S.-proposed bypasses, intensifying regional tensions. This situation has triggered a race to expand pipeline capacity and diversify routes, but the region remains vulnerable, highlighting the urgent need for resilient infrastructure and coordinated international responses to safeguard global energy security.