IMEC In Focus Again as Gulf Eyes New Oil Routes Amid Hormuz Risks

The crisis in the Strait of Hormuz has sharply revived interest in bypass pipeline projects across the Gulf, with policymakers and energy executives reassessing long-delayed infrastructure as a matter of urgency.

According to a Financial Times report, prolonged disruption to one of the world’s most critical shipping lanes — through which around 20% of global oil supply passes — is forcing a rethink of how Gulf hydrocarbons can reach international markets without relying on waters that Iran can effectively choke.

Iran’s announcement on March 2 imposing restrictions on navigation, coupled with warnings that uncoordinated vessels could be targeted, has already driven up oil prices and sent freight and insurance costs soaring.

Rethinking Export Routes

To mitigate these risks, Gulf nations are increasingly exploring alternatives that bypass the narrow chokepoint altogether — effectively removing the bottleneck before it escalates into a full-blown crisis.

The most immediate beneficiary of this shift is Saudi Arabia’s East–West pipeline, a 1,200-kilometre route linking the kingdom’s eastern oil fields to the Red Sea port of Yanbu, allowing exports to completely avoid Hormuz.

One senior Gulf energy executive described the pipeline as “a genius masterstroke” in hindsight. Amin Nasser, chief executive of Saudi Aramco, said it has become the “main route that we are capitalising on right now”, as the kingdom evaluates expanding its capacity and developing additional Red Sea export terminals.

Similarly, United Arab Emirates is reassessing the strategic importance of its existing pipeline to Fujairah, which also allows shipments to bypass Hormuz.

Haifa Access

Among the more ambitious proposals under discussion is a potential energy corridor linking the Arabian Peninsula to the Mediterranean via Haifa in Israel. Such a route would provide a direct export pathway to Europe without passing through the Gulf.

However, the idea faces significant geopolitical hurdles, particularly around regional alignments and sensitivities.

IMEC Project

The renewed urgency has also brought the proposed India-Middle East-Europe Economic Corridor back into focus. Backed by the United States, the project aims to link India with Europe via West Asia through a network of ports, railways and pipelines spanning the UAE, Saudi Arabia, Jordan and Israel.

While the concept offers a long-term structural solution to supply-chain vulnerabilities, its execution will depend heavily on political coordination — especially Saudi Arabia’s position on routes involving Israel.