As risks rise in the Strait of Hormuz, oil companies and governments across the region are beginning to reconsider how crude oil is transported.
Missile exchanges that began Saturday between the United States and Israel on one side and Iran on the other—spreading to other countries in the region—are now threatening one of the world’s most critical arteries for energy supply.
Against this backdrop, Egypt has presented itself as part of the solution. Egypt’s Minister of Petroleum, Karim Badawi, announced his country’s readiness to facilitate the transfer of Saudi oil to the Mediterranean. The statement signals that Cairo is closely monitoring the implications of escalating tensions for traditional export routes and is exploring a role in alternative pathways that could gain importance if risks in the Gulf intensify.
Egypt’s moves come as Saudi Aramco studies options to reduce its dependence on shipments passing through the Strait of Hormuz—one of the world’s most sensitive maritime chokepoints. Among the options under consideration is expanding reliance on the pipeline that transports oil from eastern Saudi Arabia to the Red Sea coast, reaching the port of Yanbu, from where it can be re-exported to global markets.
At the center of this equation is the SUMED pipeline, which links the Red Sea to the Mediterranean through Egyptian territory. Stretching between Ain Sokhna and Sidi Kerir, the pipeline provides a land-based route that bypasses areas of tension in the Gulf and allows crude oil to reach European and American markets.
Cairo says its infrastructure is capable of accommodating any increase in transit volumes. The ports and storage facilities connected to SUMED were originally designed to handle massive crude shipments, enabling Egypt to play a potential role as an alternative transit corridor should some traditional supply routes be disrupted.
Despite the ongoing war between the United States and Israel on one side and Iran on the other, the Egyptian government says domestic supplies have not been affected so far. The Ministry of Petroleum notes that the country relies on diversified gas sources, alongside a program to drill new wells in the Mediterranean during 2026. It also points to contracts securing shipments of liquefied natural gas through 2027.
Medhat Youssef, former vice chairman of the Egyptian General Petroleum Corporation, says Egypt’s role in this equation is not new. Saudi Arabia is a key partner in the SUMED pipeline company and holds significant influence on its board of directors, in addition to owning crude storage facilities between Ain Sokhna and Sidi Kerir.
Youssef explains that Aramco already uses the Saudi pipeline known as East–West Pipeline to transport up to about five million barrels per day to the port of Yanbu. From there, some shipments are exported directly to markets, while part of the crude is transferred to SUMED storage facilities before being re-exported through the Mediterranean. He notes that this route “is not an exceptional measure,” but rather part of Saudi Arabia’s export network that has been operating for years.
The storage facilities operated by SUMED are not used exclusively by Aramco. Global and local companies also lease storage capacity there, using the facilities as temporary hubs before re-exporting crude to Europe or the United States.
For his part, Yasser Hilal, an energy researcher and publisher of the website Taqat Al-Sharq, says the statements by Egypt’s petroleum minister also carry a political message about mutual support between Cairo and Riyadh in the face of regional threats.
Hilal notes that the SUMED project—jointly owned by Egypt, Saudi Arabia, the United Arab Emirates, and Kuwait—represents an important strategic alternative for transporting oil, particularly given the sensitivity of transit through the Suez Canal. He adds that the canal’s expansion in recent years has increased its capacity to accommodate supertankers, further strengthening Egypt’s role in securing global energy routes.
As for Iranian threats to close the Strait of Hormuz, Hilal says they add new importance to these alternative routes. However, he points out that roughly 80 percent of the exports passing through the strait are destined for countries that maintain close relations with Tehran, making any attempt to close the waterway economically and politically costly for Iran.
He adds that the global oil market retains a degree of flexibility, particularly given the spare production capacity held by the OPEC+ alliance. Gulf countries are also able to export between seven and eight million barrels per day through alternative routes, which could help limit any sharp and prolonged spikes in prices.
These developments reveal that the war linked to Iran is also prompting a reconsideration of the Middle East’s energy map. Between threats to the Strait of Hormuz, Saudi export options, and the role of the SUMED pipeline, Egypt is seeking to solidify its position as a key corridor for transporting oil between the Gulf and the Mediterranean.
The article is a translation of the original Arabic.
