Alternative Routes for Middle East Oil and Gas Due to Hormuz Disruption

 The sun rises behind tankers anchored in the Strait of Hormuz off the coast of Qeshm Island, Iran, Saturday, April 18, 2026. (AP)
The sun rises behind tankers anchored in the Strait of Hormuz off the coast of Qeshm Island, Iran, Saturday, April 18, 2026. (AP)
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Alternative Routes for Middle East Oil and Gas Due to Hormuz Disruption

 The sun rises behind tankers anchored in the Strait of Hormuz off the coast of Qeshm Island, Iran, Saturday, April 18, 2026. (AP)
The sun rises behind tankers anchored in the Strait of Hormuz off the coast of Qeshm Island, Iran, Saturday, April 18, 2026. (AP)

The US-Israeli war with Iran has disrupted shipping through ‌the Strait of Hormuz, the world's most important oil chokepoint, exposing the Middle East's limited alternatives for exporting its hydrocarbons.

The International Energy Agency (IEA) called it the largest supply disruption on record, bigger than the oil shocks of the 1970s and the loss of Russian pipeline gas after Moscow's invasion of Ukraine combined.

These are the existing and possible alternative oil and gas export bypasses of the Strait of Hormuz:

EXISTING PIPELINES:

EAST–WEST PIPELINE (SAUDI ARABIA)

Saudi Arabia's 1,200-km East–West pipeline can transport up to 7 million barrels per day (bpd) of crude to the Red Sea port of Yanbu, with effective exports estimated at around 4.5 million bpd, depending on tanker and jetty availability.

From Yanbu, shipments can travel ‌to Europe via ‌the Suez Canal or south via the Bab el-Mandeb ‌strait ⁠to reach Asia, ⁠a route carrying security risks from Yemen's Houthi militants, who have attacked tankers during the Gaza war.

HABSHAN–FUJAIRAH PIPELINE (UAE)

The Abu Dhabi Crude Oil Pipeline (ADCOP) runs from Abu Dhabi's Habshan onshore fields to Fujairah on the Gulf of Oman, outside Hormuz. Operated by ADNOC and commissioned in 2012, the 360-km pipeline has capacity of about 1.5–1.8 million bpd. Oil loadings at Fujairah, however, have been affected by drone attacks since the Iran war started ⁠at the end of February.

KIRKUK-CEYHAN PIPELINE (IRAQ- TÜRKIYE)

Iraq's main northern export route ‌runs from Kirkuk to Türkiye's Mediterranean port of ‌Ceyhan via the Kurdistan region. The pipeline restarted last September after a 2-1/2-year shutdown following an ‌interim deal between Baghdad and the Kurdistan Regional Government. On March 17, Iraq began ‌pumping 170,000 bpd, with plans to reach 250,000 bpd, after Iraq's national oil company SOMO signed export contracts via Türkiye, Jordan and Syria.

GOREH-JASK PIPELINE

Iran may be able to utilize the Jask terminal, fed by the 1 million bpd Goreh-Jask pipeline, to bypass the Strait, the ‌IEA said in its latest oil market report. The construction of the terminal is not fully complete but a loading ⁠from Jask was tested ⁠in 2024, it said.

POSSIBLE ALTERNATIVE ROUTES:

IRAQ–OMAN PIPELINE Iraq said last September it was considering a pipeline from Basra to Oman’s port of Duqm on the Gulf of Oman.

The project remains at an early conceptual stage, with routes under study including an overland line via neighboring countries or a costly subsea pipeline.

IRAQ–JORDAN PIPELINE

The proposed 1 million bpd pipeline would ship crude from Basra to Jordan's Red Sea port of Aqaba, bypassing Hormuz.

First proposed in the 1980s and approved in principle in 2022, the project remains stalled by cost, security and political hurdles.

GULF–SEA OF OMAN CANAL

A canal bypassing Hormuz - similar to the Suez or Panama Canals - remains purely conceptual. A project to cut through the Hajar Mountains toward Fujairah would face extreme engineering challenges and could cost hundreds of billions of dollars.



Saudi Stock Market Edges Lower in First Session of the Week

An investor monitors a stock screen at the Saudi financial market in Riyadh (AFP)
An investor monitors a stock screen at the Saudi financial market in Riyadh (AFP)
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Saudi Stock Market Edges Lower in First Session of the Week

An investor monitors a stock screen at the Saudi financial market in Riyadh (AFP)
An investor monitors a stock screen at the Saudi financial market in Riyadh (AFP)

Saudi Arabia’s stock market index ended trading slightly lower, falling 0.25 percent to close at 10,968 points, amid trading turnover of around SAR2.9 billion, the lowest level since January 2026.

Mining giant Maaden fell 2 percent to close at SAR62.7, while SABIC declined by the same percentage to SAR59.4. Arabian Drilling slipped 1 percent to SAR86.6.

In the banking sector, Saudi National Bank shares fell 0.26 percent to SAR38.5.

Meanwhile, Saudi Aramco, the index’s heaviest-weighted stock, rose 0.3 percent to close at SAR27.78.

ACWA Power also gained 2 percent to SAR181.10.

Kingdom Holding rose 6 percent to SAR11.01, while Solutions climbed 4 percent to close at SAR229.6.


Oman Inflation Rises 3.2% in April

Shoppers at a food and beverage store in Oman. (Reuters)
Shoppers at a food and beverage store in Oman. (Reuters)
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Oman Inflation Rises 3.2% in April

Shoppers at a food and beverage store in Oman. (Reuters)
Shoppers at a food and beverage store in Oman. (Reuters)

Oman’s consumer price index (CPI) rose 3.2 percent in April compared with the same month in 2025, based on 2018 as the reference year.

The National Center for Statistics and Information said in data carried by the Oman News Agency on Sunday that average inflation during the period from January through April increased by 2.6 percent.

The data showed that the miscellaneous personal goods and services group recorded the highest increase at 9.2 percent, followed by food and non-alcoholic beverages at 6.2 percent, and transport at 6 percent.

The food and non-alcoholic beverages group recorded increases across most categories in April compared with the same month last year, led by vegetables at 25 percent, followed by fruits at 11.6 percent, and fish and seafood at 6.1 percent.

The data also showed varying inflation rates across Oman’s governorates at the end of April compared with the corresponding period last year. Al Dhahirah Governorate recorded the highest increase at 4.4 percent, followed by Al Dakhiliyah and Muscat governorates at 3.7 percent, and Al Buraimi Governorate at 3.5 percent.


Gulf, International Initiative to Assess War’s Impact on Private Sector

A previous meeting of the Federation of GCC Chambers in Riyadh. (SPA)
A previous meeting of the Federation of GCC Chambers in Riyadh. (SPA)
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Gulf, International Initiative to Assess War’s Impact on Private Sector

A previous meeting of the Federation of GCC Chambers in Riyadh. (SPA)
A previous meeting of the Federation of GCC Chambers in Riyadh. (SPA)

Asharq Al-Awsat has learned of a joint initiative by the Federation of GCC Chambers and the International Labor Organization to conduct a rapid assessment of the impact of the war on the private sector and labor markets across Gulf Cooperation Council countries.

The initiative is expected to contribute directly to the formulation of actionable recommendations aimed at preserving labor market stability and supporting business continuity.

The initiative seeks to assess the impact of the current crisis and conflict on private sector institutions, with particular focus on small and medium-sized enterprises, as well as on labor markets across GCC states.

According to the information obtained, the Federation of GCC Chambers has asked private sector companies and institutions across member states to document the impact of the war, whether they market their products domestically or in regional and international markets.

The federation is also seeking to determine the effects of the current regional crisis on supply chains and private sector operations, including delays in receiving imported inputs, shortages of critical materials affecting operations, higher transportation and logistics costs, and disruptions in the distribution of goods and services to markets and customers.

It is also examining the direct impact of disruptions to maritime trade routes, including the Strait of Hormuz, on businesses, particularly in terms of rerouting shipments through alternative routes or transport methods, difficulties shipping or receiving goods by sea, increased shipping and insurance costs, declining import and export volumes, and shipment or order delays and cancellations.

The federation has further requested information on the extent to which the crisis has affected overall operating expenses, whether significantly, moderately or not at all, as well as its impact on companies’ investment plans, including whether firms intend to cancel, reduce or indefinitely postpone investments, or instead increase spending to adapt, restructure or respond to new conditions.

Among the challenges the federation is seeking to assess are companies’ ability to cover operating and fixed costs, revenue conditions, and the immediate measures taken regarding their workforce in response to the crisis, including reducing working hours, shifting employees to part-time arrangements, freezing recruitment and hiring, cutting wages and benefits, or reallocating staff to different roles and functions.

Secretary-General of the Gulf Cooperation Council Jasem Albudaiwi recently said that a series of Gulf economic and financial achievements had strengthened regional integration and reinforced financial stability in the face of evolving challenges.

Speaking during the 125th meeting of the GCC Financial and Economic Cooperation Committee in mid-May, Albudaiwi said the current war crisis requires Gulf states to move beyond traditional coordination toward a higher level of practical integration and effective response.

He said the accelerating crises and growing economic challenges facing the region underscore the urgent need for a conscious response and measures capable of mitigating their impact on GCC economies, which have long been characterized by openness and deep engagement with the global economy.

Albudaiwi also stressed the need to expedite the completion of key joint Gulf projects, including transportation and logistics initiatives, while accelerating implementation of the GCC railway project and strengthening the regional electricity interconnection network.

He further called for studying the establishment of oil and gas pipeline networks, a GCC water interconnection project, strategic Gulf stockpile zones, and measures to ensure adequate liquidity reserves at central banks.