Saudi Aramco chief executive Amin Nasser has been far from alone in warning of the “catastrophic consequences” for the world energy market if Iran continues to effectively close shipping through the Strait of Hormuz, a maritime chokepoint through which up to 20% of the world’s oil and gas flows. “The longer this disruption endures, the more severe its consequences for the global economy will become,” he said, naming aviation, agriculture, and the automotive industry as being among the sectors most affected.
With global oil inventories having fallen to their lowest level in five years, Nasser said the crisis would accelerate the drawdown in stocks, reiterating the need for transit to recommence through the Strait, which connects the Arabian Gulf and the Gulf of Oman. “Although we have faced disruptions in the past, this crisis is—by a wide margin—the most severe the oil and gas sector in the region has ever confronted.”
For now, Aramco has suspended oil exports through the Gulf, as cargoes can no longer be loaded onto tankers. Saudi Arabia is trying to ease an acute market shortfall through its only alternative outlet: the East-West pipeline, which carries crude to the port of Yanbu on the Red Sea. The pipeline is nearing its full capacity of seven million barrels per day (bpd), as customers seek alternative shipping routes.
The Strait of Hormuz carries not just oil but also vast quantities of exported liquefied natural gas (LNG), with Qatar the biggest producer locally. Still under attack from the United States and Israel at the time of writing, the Iranian government has said it will continue to attack any ships sailing through or near the Strait, which is one of the world’s major trade arteries. On 12 March, US Treasury Secretary Scott Bessent tried to reassure markets by saying that US warships would escort merchant vessels through the waterway.
Scanning for alternatives
Debate among analysts has focused on whether regional infrastructure can provide alternative routes for transporting oil and gas if the Strait is closed. Options include Saudi Arabia’s East-West pipeline (known as Petroline) and Egypt’s SUMED pipeline, which links the Red Sea to the Mediterranean.
At nearly 1,200km, the Saudi pipeline is seen as one of the most important strategic projects in the Middle East’s energy infrastructure. It carries crude oil from eastern oilfields to Yanbu, from where it can be exported without passing through the Strait of Hormuz. Aramco has already redirected some crude to Yanbu, but stressed that the adjustment was temporary.

Ultimately, energy security in the Gulf cannot rely on military protection of oil tankers through the Strait of Hormuz, which is unsustainable in the long run. In the meantime, the Saudi East-West pipeline fulfils a similar function to the 370km pipeline from Abu Dhabi to the port of Fujairah on the Gulf of Oman, which allows Emirati crude from the Habshan oilfield to bypass the Strait of Hormuz. Dreamt up in 2006, it was inaugurated in 2012 and built with Chinese assistance. Fujairah has a port, refinery, and vast oil storage facilities.

