Saudi Pipeline: Alternative to Ormuz Strait Amid Middle East Tensions?
The price of crude oil briefly approached $80 a barrel on Monday, March 2nd, 2026, rising approximately 10% since the prior Friday, as maritime traffic in the Strait of Hormuz dwindled following the start of a joint Israeli-American intervention against Iran. The disruption, even as not a complete closure, has prompted a scramble to assess alternative routes for Middle Eastern oil exports, with attention focusing on Saudi Arabia’s East-West pipeline.
The Strait of Hormuz, a narrow waterway between Iran and Oman, is a critical chokepoint for global energy supplies, handling roughly 20% of the world’s daily oil consumption, primarily destined for Asian markets. The recent decline in traffic is attributed to soaring insurance premiums, leading major shipping companies to suspend voyages through the strait, effectively halting most transit. According to the U.S. Energy Information Administration (EIA), the majority of oil volumes currently traversing the Strait of Hormuz lack viable alternative export routes.
While pipelines offer a potential bypass, their capacity is insufficient to accommodate the entire volume of oil typically shipped through Hormuz. The EIA estimates that approximately 2.6 million barrels per day could be diverted through existing pipeline infrastructure in the event of a complete disruption. Saudi Arabia’s Petroline, a 1,200-kilometer pipeline constructed in the 1980s during the Iran-Iraq War, is central to these contingency plans.
Petroline runs from the Ghawar oil field in eastern Saudi Arabia to the Red Sea port of Yanbu. Saudi Aramco announced on March 10th, 2026, plans to increase throughput on the pipeline, aiming to reach its maximum daily capacity of 7 million barrels around mid-March. The pipeline connects the Abqaiq oil field to Yanbou. This infrastructure was originally built to ensure Saudi oil exports could continue even if the Strait of Hormuz were blocked.
Another pipeline exists within the United Arab Emirates, allowing for some rerouting of crude oil production. Though, other Gulf nations lack comparable infrastructure to circumvent the strait. The situation has prompted concern from the International Energy Agency, which has described the current disruption as potentially “the largest disruption to oil supplies in history.”
The increased reliance on Petroline is expected to benefit Saudi Arabia financially, potentially offsetting some of the economic consequences of the broader regional instability. The pipeline’s increased utilization could also provide a degree of strategic flexibility for the United States as it navigates the ongoing intervention against Iran, though the long-term implications for global energy markets remain uncertain.
As of March 23, 2026, there has been no official statement from Iranian authorities regarding the future of maritime traffic through the Strait of Hormuz, and vessels continue to remain positioned along the coastline awaiting a resolution.