UAE Fast-Tracks West–East Oil Pipeline to Bypass the Strait of Hormuz

Officials say the pipeline could double the UAE’s export capacity through Fujairah, allowing more oil shipments to reach global markets via the Gulf of Oman rather than the Persian Gulf chokepoint.

For a country that is one of the world’s major oil producers, this additional export flexibility is increasingly seen as a strategic necessity.

Why the Strait of Hormuz Matters So Much

The urgency behind the project reflects the outsized importance of the Strait of Hormuz in global energy markets. The narrow waterway between Iran and Oman connects the Persian Gulf to the open ocean and carries enormous volumes of energy shipments.

According to the U.S. Energy Information Administration, about 20 million barrels of oil per day passed through the strait in 2024—roughly 20% of global petroleum liquids consumption and more than a quarter of global seaborne oil trade.

The route is also critical for natural gas: around one‑fifth of global LNG trade transits the strait.

Because so much energy moves through a single corridor, disruptions can quickly ripple through the global economy. Tanker traffic interruptions can affect fuel prices, shipping costs, insurance markets, and supply chains far beyond the Middle East.

Conflict Disruptions Could Linger

Al Jaber warned that the effects of a major disruption to Hormuz traffic could persist even after hostilities end. He said that global oil flows may need at least four months to recover to about 80% of pre‑conflict levels once the current regional tensions subside.

Such delays reflect the complex logistics of restarting tanker movements, re‑routing cargoes, restoring insurance coverage, and stabilizing markets after a crisis.

A Shift Toward “Route Resilience” in Energy

The UAE’s pipeline expansion highlights a broader change in how energy producers think about security. Traditionally, energy security focused on having enough reserves and production capacity. Increasingly, the emphasis is shifting toward redundant export routes and infrastructure resilience.

By expanding pipelines and terminals outside chokepoints like Hormuz, producers aim to ensure energy can continue flowing even during geopolitical crises. This diversification strategy is becoming a priority across the Gulf region as shipping disruptions and regional tensions demonstrate the vulnerability of concentrated transit routes.

For the UAE, the West–East pipeline is more than an infrastructure upgrade—it is a long‑term hedge against geopolitical risk in one of the world’s most strategically sensitive energy corridors.