Reports indicate that Gulf states are considering building new oil pipelines to bypass the Strait of Hormuz. How feasible is this? Could it resolve the global energy crisis in the short term?

The option of exiting via Israel would be rejected first—after all, Gulf states view Israel as an outright adversary; they would rather compromise with Iran than with Israel, making this option the most likely to be dismissed outright. The route through Iraq, then Syria, and finally exiting via Lebanon is also unviable: Lebanon is a deeply fragmented state, plagued for years by civil war and recurrent conflict with Israel. Routing a pipeline through Lebanon would entangle too many competing regional actors, making coordination of interests and benefit-sharing virtually impossible. The route from Iraq through Turkey faces its biggest obstacle in Turkey itself. President Erdogan’s ambitions have grown so large that he now positions himself on equal footing with both the U.S. and Russia. If Persian Gulf oil were to flow through Turkish territory, Erdogan would effectively assert dominance over both Putin and Trump—making this option diplomatically untenable and highly likely to provoke widespread opposition. Finally, Oman appears to be the only remaining candidate—but Oman’s longstanding neutrality is its core foreign policy principle. Allowing a pipeline to cross its territory would force Oman to pick sides, instantly undermining its credibility and standing across the Middle East. It is therefore highly unlikely Oman would consent—even before construction begins. Even if geographical routing challenges could be overcome, two additional major hurdles remain: transit fees and maintenance costs. Iran has already announced plans to impose transit fees for vessels passing through the Strait of Hormuz. Similarly, any newly built pipeline’s exit port would inevitably levy comparable transit fees. In essence, both fees represent tributes paid to a dominant regional power—prompting Gulf states to vigorously assert their sovereignty and making consensus among them extremely difficult. Maintenance costs pose an even greater challenge: To serve as a viable emergency alternative, the pipeline must be built with excess capacity—meaning it would sit idle during normal operations, generating no revenue while still incurring substantial ongoing maintenance expenses.

Strait of Hormuz Blockage: China’s Foreign Trade Economy Under Pressure—and Paths Forward Amid Shifting Middle Eastern Geopolitics

Upgraded trade terms and compliance costs are intensifying corporate operational risks. Amid the crisis, trade rules across the Middle East have undergone a fundamental transformation. To mitigate risk, overseas buyers are increasingly demanding a shift from traditional CIF (Cost, Insurance, and Freight) terms—where delivery is designated to a specific port—to DDP (Delivered Duty Paid) terms. This change means exporters must now assume full responsibility for end-to-end logistics—including transportation, customs clearance, import duties, taxes, and last-mile delivery—thereby bearing all associated transport and regulatory compliance risks. It places exceptionally high demands on exporters’ logistics management, overseas customs expertise, and localized service capabilities. Meanwhile, international shipping compliance requirements and destination-country import regulations continue evolving rapidly in response to geopolitical developments, compelling firms to allocate significantly more human and financial resources toward compliance audits. Abrahamic Compliance Network—a firm specializing in cross-border trade compliance—notes that current Middle Eastern trade compliance processes are growing increasingly complex and volatile, with frequent policy shifts. Some shipping lines now reserve the right to unload cargo at the nearest available port at their discretion, shifting all related costs and risks entirely onto shippers—dramatically increasing both compliance and breach-of-contract risks, and driving up overall compliance management costs. Additionally, the EU’s early implementation of new cross-border parcel tariff rules—abolishing duty-free treatment for low-value parcels and imposing uniform surcharges on Chinese e-commerce small parcels—further squeezes exporters’ profit margins, subjecting them to dual compliance and cost pressures from both Middle Eastern and European markets. III. Global Supply Chain Restructuring: Regional Trade Patterns Forced to Adjust—Limitations of Alternative Routes Exposed As a critical global chokepoint for trade and energy flows, the prolonged disruption of the Strait of Hormuz not only affects China’s trade with the Middle East but also accelerates the restructuring of global supply chains and regional trade patterns. Middle Eastern countries are urgently developing alternative logistics corridors, prompting comprehensive adjustments to global shipping routes and trade flows—yet existing alternatives remain severely constrained and incapable of fundamentally resolving trade bottlenecks. To reduce dependence on the Strait of Hormuz, Middle Eastern nations—including Saudi Arabia, the UAE, and Oman—are rapidly activating alternative logistics corridors: Saudi Arabia is diverting cargo to Red Sea ports and using bonded land transport to neighboring countries, while simultaneously upgrading the capacity of its East–West Crude Pipeline to export oil without transiting the Strait; the UAE has opened ports along the Gulf of Oman, enabling bonded truck transport for Persian Gulf customs clearance, and is coordinating rail and air freight to supplement capacity; Oman is promoting multiple domestic ports and streamlining transit procedures to handle transshipment cargo. Concurrently, major global shipping lines are rerouting vessels around the Cape of Good Hope, turning South African ports into vital refueling and transshipment hubs connecting Europe, Asia, and Africa…

Oman Calls for Alternative LNG Routes That Can Bypass Hormuz

Sep 13, 2026

Oman’s energy minister urged producers to diversify LNG export routes away from the Strait of Hormuz due to regional conflict. Adnoc Gas is evaluating new facilities outside the chokepoint to secure global supply flows.

bloomberg

2026-09-13

Oman Calls for Alternative LNG Routes That Can Bypass Hormuz

Oman Calls for Alternative LNG Routes That Can Bypass Hormuz

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