Amid US-Iran conflict, the Middle Eastern countries plan to reduce dependence on waterways for oil transport. Recent reports by CNN have highlighted that rising regional conflicts and Iranian efforts to impose transit rules have created serious uncertainty over whether the Strait of Hormuz will remain an open international waterway or fall under Iranian control. If the waterway falls under Iran’s control, the Islamic Republic would not only collect billions of dollars in annual transit fees, but also enjoy the opportunity to control global energy supplies. Before the conflict, approximately 20-23 million barrels of oil and petroleum products moved daily through the Strait of Hormuz, representing about 20% of global petroleum consumption, as it was the primary route for energy exports from Iraq, Kuwait, Qatar and Bahrain.

However, oil transportation through the Strait of Hormuz is repeatedly being disrupted in the current situation. Maritime traffic through the Bab el-Mandeb Strait – which connects the Red Sea, the Gulf of Aden and the Arabian Sea – has declined, as well, because of attacks by the Houthi rebels of Yemen.

After considering the situation, Saudi Arabia has invested several billion dollars to repair the East-West Crude Oil Pipeline (or the Petroline), a 1,201km infrastructure asset built in the early 1980s to transport crude from Abqaiq to Yanbu on the Red Sea coast, bypassing the Strait of Hormuz. Currently, approximately seven million barrels of oil are being transported daily through this pipeline. Riyadh has announced plans to increase the transport capacity of this pipeline by another two million barrels by the end of 2029.

To the south of Hormuz, the United Arab Emirates (UAE) operates the Habshan-Fujairah oil pipeline (or the Abu Dhabi Crude Oil Pipeline) and the Port of Fujairah, allowing up to 1.8 million barrels of oil per day to bypass the Strait. The UAE has undertaken an expansion programme to double its strait-free export capacity to roughly 3.3-3.6 million barrels per day by the end of 2027.

Iraqi Prime Minister Ali al-Zaidi met US President Donald John Trump at the White House on July 14, 2026 as the two leaders pledged to deepen economic ties and boost Iraq’s oil output. The visiting Iraqi Prime Minister reportedly assured the US President that his government would increase the capacity to transport 750,000 barrels per day (bpd) through the Kirkuk-Ceyhan oil pipeline as part of a 12-month deal extension (with Washington DC). al-Zaidi also pledged to assist in implementing plans to construct a new oil pipeline to Jordan. This pipeline will run from Basra to Haditha (in Iraq), while another line from Haditha will connect to the Jordanian port of Aqaba. Subsequently, oil will be exported to international markets via the Red Sea.

In recent times, Iran has demonstrated that it is quite capable of targeting commercial vessels passing through the Strait of Hormuz, if they do not comply with its stipulated conditions. The Houthis, too, have demonstrated similar capabilities. The US and its allied Gulf nations view Iran and Houthi attempts to control or restrict passage through the Strait of Hormuz, as well as the Red Sea, as direct threats to freedom of navigation and global commerce. Hence, they have decided to reduce dependence on waterways for oil transport.

Meanwhile,

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Published by Koushik Das

Koushik Das (born on May 16, 1976 in Kolkata) is a career journalist. Based in the Indian capital of New Delhi, Koushik writes mainly about foreign policies and current geopolitical issues, and rarely about other topics. His own political ideas are highly influenced by Antonio Gramsci, Louis Althusser, Michel Foucault, Michael Oakeshott and others. English philosopher and political theorist Oakeshott (Dec 11, 1901-Dec 19, 1990) says that “in political activity, men sail a boundless and bottomless sea. There is neither harbour for shelter nor floor for anchorage, neither starting-place, nor appointed destination. But we have to keep afloat”. (Rationalism in Politics, 1962) As a student of Political Science, Koushik loves to share his views on issues, which have great impacts on his thought process (and also on India, South Asia and of course on the global community), with his readers through his website – Boundless Ocean of Politics. By doing so, he tries to keep himself afloat. You will find some of his articles in https://inserbia.info/today/ (https://inserbia.info/today/author/kou_das13_i/), as he has been trying to assess the global geopolitics since 2003. You can also mail him at kousdas@gmail.com View all posts by Koushik Das