Gulf conflict may spur new oil pipeline projects

The ongoing disruption of traffic through the Strait of Hormuz is accelerating plans to develop new pipeline routes to export oil while bypassing the strategic waterway, the Financial Times reported.

Military operations involving the United States and Israel against Iran have underscored the vulnerability of shipments through the strait, increasing the focus on alternative export routes. This has highlighted the importance of Saudi Arabia’s existing East-West pipeline, a 1,200-kilometer system built in the 1980s amid fears that the Iran-Iraq war could block maritime flows.

The pipeline currently serves as a key artery, carrying up to 7 million barrels per day to the Red Sea port of Yanbu, allowing exports to bypass the Strait of Hormuz.

Saudi Arabia is now considering expanding the pipeline’s capacity to 10.2 million barrels per day and exploring options for constructing additional branches in different directions, the newspaper said.

Officials in Gulf countries have also raised the possibility of advancing the India–Middle East–Europe economic corridor, which includes plans for energy infrastructure linking Gulf producers through Saudi Arabia and Jordan to Israel’s Mediterranean port of Haifa.

Costs and routes

Christopher Busch, head of C.A.T. Group, which participated in building the East-West pipeline, estimated that constructing an additional pipeline could cost around 5 billion US dollars. A broader network crossing Iraq, Jordan, Syria or Turkey could require investments of between 15 billion and 20 billion US dollars, he said.

Israeli Prime Minister Benjamin Netanyahu on March 19 presented an initiative to build oil and gas pipelines connecting Gulf states with Israel and onward to European markets. Israeli officials said the aim is to reduce dependence on routes through both the Strait of Hormuz and the Bab el-Mandeb strait, where shipping faces threats from Yemen’s Houthi forces.

Speaking at a press conference in Jerusalem, Netanyahu said such infrastructure could reshape global energy flows by creating more resilient export corridors.

According to Agence France-Presse, around 20,000 seafarers are currently stranded aboard roughly 3,200 vessels in the Gulf region, reflecting the scale of disruption to maritime logistics.

Israeli sources said the proposal has been shared with Gulf countries, particularly Saudi Arabia. They added that the United States supports the initiative, although Riyadh’s response remains cautious.

Potential role for Azerbaijan

If such projects move forward, Azerbaijan could participate through technical expertise and potential investment. The country has extensive experience in developing major export infrastructure, including the Baku–Tbilisi–Ceyhan and Baku–Supsa pipelines.

Given its strong ties with both Israel and Gulf states, Baku could also emerge as a financial partner in such initiatives. Azerbaijan is already involved in offshore gas development projects in the eastern Mediterranean with Israel, providing a foothold in the region’s energy sector.

Analysts at Turan Analytical Service say the Gulf conflict could trigger a broader restructuring of hydrocarbon transport systems, leading to the emergence of new logistical chains.

Similar shifts followed the collapse of the Soviet Union, when new oil and gas pipelines, railways and trade corridors were developed across the South Caucasus and Central Asia, linking Europe with Asia.