Middle East Producers Plan 7 Pipelines as Iran, Houthis Threaten 23 Million Bpd Gulf Exports
Updated
Updated · CNBC · Jul 16
Middle East Producers Plan 7 Pipelines as Iran, Houthis Threaten 23 Million Bpd Gulf Exports
3 articles · Updated · CNBC · Jul 16
Summary
Seven pipelines are under construction or planned across the Middle East as Gulf producers try to route crude around the Strait of Hormuz after near-daily tanker attacks.
Goldman Sachs estimates regional pipeline capacity could exceed 14 million bpd by end-2028—more than 60% of the seven Gulf states' pre-war 23 million bpd export volume.
Iraq has been hit hardest: output fell by more than 50% to 1.9 million bpd in June from 4.2 million bpd in February, and the U.S. is backing a rebuilt Kirkuk-Syria-Mediterranean line.
The UAE plans a second Fujairah pipeline and Saudi Arabia is weighing a 2 million bpd Red Sea expansion, but analysts say pipelines remain exposed after Iran cut Saudi throughput by 700,000 bpd in April.
That vulnerability is widening beyond Hormuz, with Houthis threatening to close Bab el-Mandeb—a move that could trap millions of barrels per day now diverted to Saudi Arabia's Yanbu terminal.
Are new multi-billion dollar pipelines just creating more vulnerable targets for cheap drone attacks?
As cheap drones overwhelm defenses, what new technology can realistically protect this energy infrastructure?
The 2026 Middle East Energy Crisis: Chokepoint Closures, Bypass Race, and Global Economic Fallout
Overview
The Middle East is facing a severe energy crisis as the closure of the Strait of Hormuz and rising threats to the Bab el-Mandeb Strait disrupt vital oil routes. After failed ceasefire talks with Iran, the U.S. imposed a naval blockade, leaving merchant vessels stranded and forcing Gulf oil producers to urgently seek alternative export paths. Iran rejected U.S.-proposed bypasses, intensifying regional tensions. This situation has triggered a race to expand pipeline capacity and diversify routes, but the region remains vulnerable, highlighting the urgent need for resilient infrastructure and coordinated international responses to safeguard global energy security.