Regional and international discussions have intensified in recent weeks over alternatives to the Strait of Hormuz, as countries seek to reduce reliance on the vital waterway that carries about one-fifth of global oil supplies.
The importance of these discussions has grown as navigation in Hormuz has been disrupted since U.S. and Israeli strikes on Iran began on Feb. 28, with Tehran using the strait as a tool of political and economic pressure.
In this context, political proposals have emerged calling for the development of alternative routes. Among them is an initiative by Israeli Prime Minister Benjamin Netanyahu, who is pushing for the creation of a network of oil and gas pipelines extending westward across the Arabian Peninsula to Israeli ports on the Red Sea or the Mediterranean, with the aim of reducing dependence on the Strait of Hormuz.
However, implementing such a project would require approval from Gulf states and their willingness to proceed, raising questions about how this proposal aligns with their strategic priorities and sovereign interests.
Omani writer and political analyst Ahmed Al-Shizawi told Alhurra that reviving the idea of transporting Gulf oil via Israel represents an attempt to leverage regional tensions. He noted that, despite political promotion, the proposal faces complex economic and geopolitical challenges, stressing that “these factors are pushing Gulf states to seek more realistic and less costly alternatives.”
For his part, Bahraini international political adviser Ahmed Al-Khazai told Alhurra that the project faces major challenges, most notably high infrastructure costs, the need for regional and international political consensus, and the requirement for approval from Gulf exporting countries — something that is not guaranteed given the sensitivity of normalization with Israel and associated security risks.
Al-Khazai said the proposal, in its current form, is closer to a long-term strategic vision than a project that could be implemented in the near future.
Saudi academic and political analyst Khaled Batterjee said transporting oil and gas via Israel is theoretically possible but faces deep political obstacles. He told Alhurra that any economic cooperation of this scale would remain contingent on Israel’s acceptance of the Arab Peace Initiative and the establishment of a Palestinian state.
Potential Fees
In a notable development, Iran’s semi-official ISNA news agency reported last Saturday that Saeed Rahmatzadeh, a member of parliament’s economic committee, said Tehran has prepared a draft law to impose fees on ships transiting the Strait of Hormuz.
Such a step, if taken, could affect countries’ efforts to seek alternatives to the key maritime route.
Batterjee said that “imposing transit fees, whether formally or informally, would push Gulf states to accelerate the search for alternatives, without automatically giving an advantage to the Israeli route.” He added that such a move would lead Gulf producers to favor routes within their own sovereignty or within trusted Arab partnerships, reinforcing reliance on ports such as Yanbu Port and Fujairah Port, as well as Red Sea routes, Arab interconnection pipelines, expanded overseas storage, and flexible contracts.
Al-Khazai agreed, saying that imposing fees on ship transit in Hormuz could push Gulf states to consider alternatives, even if costly, including the Israeli route as a long-term option.
Al-Shizawi stressed that current developments have reinforced these countries’ conviction of the need to diversify export routes and avoid reliance on a single corridor, supporting the development of a more independent regional energy security system.
Gulf States’ Options
Observers say Gulf states have several options to deal with developments related to the Strait of Hormuz, including the possibility of Iran imposing fees on commercial vessels and oil tankers passing through the strait.
Among these options is the use of alternative export routes, Batterjee said. Saudi Arabia has recently increased exports through Yanbu to about 4 million barrels per day via the East-West Pipeline, while the United Arab Emirates can redirect part of its exports to Fujairah through the Habshan–Fujairah pipeline, according to experts.
Batterjee said the strategy also includes “internationalizing the cost of Iranian behavior legally and from a security standpoint by pushing for international arrangements to protect navigation and reject imposing fees on an international waterway, alongside restructuring contracts, insurance and inventories to distribute risk across multiple outlets.” He added that it also involves accelerating investment in Arab connectivity projects, such as integration with Egypt through the “SUMED” pipeline, and developing new land-sea corridors.
Regarding a scenario in which both the Strait of Hormuz and the Bab el-Mandeb are disrupted, Batterjee warned of major repercussions, noting that current alternatives would not be sufficient to offset the resulting shortfall.
Al-Khazai said the presence of alternative ports in the United Arab Emirates, Oman and along the Red Sea reduces risks but does not prevent their escalation if Bab el-Mandeb is disrupted, which would force the use of longer and more costly routes and increase pressure on supply chains.
SUMED Pipeline
The SUMED pipeline in Egypt stands out as one of the potential alternatives for Gulf oil exports via Hormuz. It runs from the port of Ain Sokhna on the Gulf of Suez to the port of Sidi Kerir on the Mediterranean Sea.
The pipeline provides a route to transport oil from Gulf countries to Europe and global markets. It also serves as a strategic option for supertankers and helps ease pressure on the Suez Canal in some cases.
Egyptian Petroleum Minister Karim Badawi said on March 3 that Egypt has the technical and logistical capabilities to support this route, expressing Cairo’s readiness to cooperate with Gulf states in this regard.
Until the issue is resolved, the Saudi Ports Authority, “Mawani,” announced on March 23 the launch of a new logistics corridor linking Sharjah with the Saudi city of Dammam, aimed at improving the movement of goods and enhancing supply chain efficiency amid pressures linked to the Strait of Hormuz.
Batterjee said the corridor has commercial and logistical viability but does not constitute an alternative to major energy routes.
Regarding Hormuz, Batterjee pointed to other alternatives that may be more feasible and less politically sensitive, such as routes through Turkey or potential routes through Syria and Lebanon if conditions stabilize and infrastructure is rehabilitated.
The article is a translation of the original Arabic.
Sakina Abdallah
A Saudi writer, researcher, and TV presenter
