Saudi Arabia is exploring a major expansion of its oil export infrastructure to reduce reliance on the Strait of Hormuz, according to Reuters, as Gulf producers reassess their energy supply routes following heightened tensions with Iran. The discussions come as Tehran continues to assert greater control over the strategic waterway, prompting several regional exporters to accelerate plans aimed at bypassing one of the world's most critical maritime chokepoints.
Reuters, citing five sources familiar with the discussions, reported that Saudi Arabia is considering increasing the capacity of its east-to-west pipeline network connecting its oil fields to the Red Sea port of Yanbu. The project would allow additional crude exports to reach global markets without passing through the Strait of Hormuz, where recent military confrontations have underscored the vulnerability of regional energy supplies.
Saudi Arabia's existing pipeline can transport approximately 7 million barrels of crude oil per day to Yanbu. According to Reuters, officials are holding preliminary discussions with neighboring countries about expanding that capacity by another 2 million barrels per day, although it remains unclear whether the project would involve upgrading existing infrastructure or constructing an entirely new pipeline.
The renewed interest follows months of heightened instability in the Gulf. During the recent conflict involving the United States and Iran, shipping through the Strait of Hormuz was severely disrupted as Iran imposed restrictions that complicated energy exports from several Gulf producers. The episode reinforced long-standing concerns about the risks associated with relying on a single maritime corridor that carries a significant share of the world's oil exports.
Saudi Arabia is not alone in seeking alternatives.
The United Arab Emirates has already embarked on an ambitious strategy designed to eliminate nearly all dependence on the Strait of Hormuz for its exports. Speaking to Bloomberg in June, UAE Minister of Foreign Trade Thani Al Zeyoudi outlined the country's long-term objective.
"We're moving toward having zero Hormuz dependency and that's regardless of whether it's open or not," Al Zeyoudi said.
"It's going to open and we hope that will happen quickly, but we will not stop the new plan," he added, referring to the ceasefire agreement between Washington and Tehran and the reopening of maritime traffic.
The UAE's infrastructure expansion centers on its export terminal at Fujairah, located on the Gulf of Oman outside the Strait of Hormuz. The project will nearly double pipeline export capacity from the current 1.8 million barrels per day to more than 3.5 million barrels daily. Officials are also expanding the ports of Dibba and Khor Fakkan, constructing at least one additional harbor along the Gulf of Oman coastline, and investing in complementary rail, road and pipeline infrastructure.
The UAE remains one of only two Gulf countries with operational pipeline systems capable of exporting substantial volumes of crude without requiring tankers to transit the Strait of Hormuz, giving it a strategic advantage as regional shipping risks persist.
Iraq is also moving to diversify its export network. CNBC reported earlier in June that Iraq's cabinet approved plans to accelerate shipments through the Kurdistan-Turkey pipeline system. The project could increase export volumes from approximately 220,000 barrels per day to roughly 770,000 barrels daily, providing Baghdad with an alternative outlet that bypasses the Gulf.
