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Gulf Nations Race to Bypass Strait of Hormuz After Oil Chokepoint Closure

Financial Times Companies •
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Saudi Arabia and the UAE have ramped up alternative oil export routes after Iran's closure of the Strait of Hormuz, diverting 20 million+ barrels daily through expanded pipelines. Saudi’s East-West pipeline now pumps at 7mn b/d—up from 2mn b/d pre-war—while Abu Dhabi accelerates its Fujairah route. Iraq plans Red Sea pipelines, and Qatar explores land links to Turkey and Egypt. These efforts aim to boost bypass capacity to two-thirds of prewar flows, but risks persist: Saudi pipelines face drone attacks, and the Red Sea’s Bab al-Mandab strait remains vulnerable to Houthi strikes. Taiwan’s semiconductor dominance (90% global supply) draws parallels to Hormuz, highlighting supply chain diversification needs. Indonesia scrapped plans to monetize the Malacca Strait after backlash, underscoring global tensions over chokepoint control.