Middle East
Gulf nations revive multi-billion dollar pipeline plans to bypass Strait of Hormuz
Iran’s threat to establish indefinite control over the Strait of Hormuz is forcing Gulf nations to revive costly pipeline projects aimed at bypassing the strategic chokepoint to ensure the continuity of oil and gas exports.
According to the Financial Times (FT), officials and industry executives note that while such projects are expensive, politically complex, and require years to complete, new pipelines may be the only way to reduce the persistent vulnerability of Gulf states to disruptions in the strait.
The current conflict has once again underscored the strategic value of Saudi Arabia’s 1,200-km East-West pipeline. Built in the 1980s amid fears that the Iran-Iraq “tanker war” would shutter the strait, this line has become a vital lifeline, capable of transporting 7 million barrels of oil per day to the port of Yanbu on the Red Sea, completely bypassing Hormuz.
“In hindsight, the East-West pipeline looks like a stroke of genius,” said a senior energy executive from the Gulf.
Amin Nasser, CEO of the Saudi state oil giant Aramco, told analysts last month that the pipeline is currently the primary route they utilize most effectively.
Now, the kingdom is evaluating how it can export more of its 10.2 million barrels of daily production through pipelines rather than sending it through Iranian-controlled waters. This assessment includes whether to further increase the capacity of the East-West pipeline or construct entirely new routes.
Previous regional plans for pipelines were repeatedly suspended or shelved due to high costs and complexity. However, Maisoon Kafafy, a senior adviser on Middle East programs at the Atlantic Council, stated that the mood in the Gulf has now shifted.
“I sense a transition from assumptions toward operational reality,” Kafafy said. “Everyone is looking at the same map and reaching the same conclusions.”
Kafafy noted that rather than individual projects, the most resilient option would be a “network of corridors” rather than a single alternative pipeline, though she added this would also be the most difficult to realize.
In the long term, new pipelines are likely to be part of broader trade routes through which a wide array of goods beyond oil and gas can flow.
One Gulf official mentioned that one option is the revival of US-led plans for an ambitious corridor known as IMEC, which would stretch from India to the Gulf and onward to Europe. However, part of this project involves a politically sensitive pipeline that would initially extend to the Israeli port of Haifa.
Yossi Abu, CEO of the Israeli firm NewMed Energy, expressed confidence that pipelines extending to the Mediterranean—whether terminating at Israeli or Egyptian ports—will be built.
“People must control their own destiny alongside their friends,” Abu said. “Throughout the region, on land, you need oil pipelines and railway connections without allowing others to create chokepoints that would suffocate us.”
Christopher Bush, CEO of the Lebanese private firm Cat Group—one of the primary builders of Saudi Arabia’s East-West pipeline—said there was significant interest in new projects even before the war began.
“We have received requests regarding various pipelines. I have many different presentations on my desk,” Bush said.
However, Bush added that the hurdles remain immense, estimating that rebuilding the East-West pipeline today—which was carved out by blasting through the hard basalt rock of the Hijaz mountains on the Red Sea coast—would cost at least $5 billion. Proposals for more complex, multi-country routes passing from Iraq through Jordan, Syria, or Türkiye would cost between $15 billion and $20 billion.
“This issue has been studied. There are even pre-engineering studies for such routes from Iraq. There is a discussed opportunity,” Bush said.
Nevertheless, security risks include “numerous” unexploded bombs in Iraq and the continued presence of ISIS or other militants. Bush also warned that pipelines extending south to ports in Oman would face the difficulty of traversing both desert and rugged, rocky mountains.
Ports in Oman are also not exempt from Iranian security threats. Recent drone attacks on Salalah, a major port, caused the facility to be temporarily closed.
Political challenges include who would operate the pipeline and who would control the flow. A pipeline network would require Gulf countries to “abandon their individual policies and unite.”
In the short term, the most viable options may be expanding the East-West pipeline and Abu Dhabi’s existing route to Fujairah. This could increase capacity without the complexities introduced by new cross-border infrastructure.
Saudi Arabia could also develop additional export terminals on the Red Sea coast, including the deep-water port being built for the Neom project.
“I am certain they are considering this as a possibility. There are many smart people currently examining all of this. This is a major problem,” Bush said.
A senior energy executive noted that Abu Dhabi has always had a “Plan B” for a second pipeline to Fujairah but added that any decision is unlikely until the long-term status of the Strait of Hormuz is clarified.
Kafafy of the Atlantic Council agreed that it would take some time for Gulf countries to assess the situation regarding the waterway, but she stated that nations now accept that the scale of the current energy crisis requires a new way of thinking.
“Progress has been made in the chain of discussions. I do not expect the situation to return to its pre-conflict state,” she said.
Middle East
Israeli envoy warns red line crossed over Turkish moves in Syria
Israel’s Ambassador to the US, Yechiel Leiter, stated that Tel Aviv received clear intelligence showing Türkiye planned to expand its military presence in Syria significantly, an action Israel deemed the crossing of a “red line.”
Speaking to The Jerusalem Post, Leiter said: “We are not looking for an escalation or a war with either Türkiye or Syria. But a red line was crossed.”
His remarks follow an Israeli air strike on the Abu al-Duhur Airbase in Idlib, Syria, which drew swift criticism from both the Syrian and Turkish governments.
Leiter continued:
“This was seen as a blatant Turkish violation of the understandings. Those who needed access to the intelligence received it. Those who needed to know what was going to happen knew. We made it clear that this was contrary to our understandings, and that is why Israel acted as it did.”
According to Leiter, the failure to heed these warnings led Israel on Tuesday to strike the Abu al-Duhur airbase, where Turkish forces were allegedly expected to arrive.
Syrian officials stated that the airbase was targeted by at least eight strikes, whilst subsequently released satellite imagery revealed damage to the runways.
Leiter stated that the Turkish move contradicted understandings reached during the Biden administration between Israel and the administration of Syria’s new leader, Ahmed al-Sharaa, which “froze the existing situation” in the country.
According to Leiter, these understandings were reaffirmed during a meeting held in Paris in January 2026, attended by Syrian Foreign Minister Asaad al-Shaibani, US Special Envoy for Syria Tom Barrack, Leiter, then-National Security Council head Gil Reich, and Netanyahu’s military secretary Roman Gofman (now director of Mossad).
Leiter continued:
“This freeze means we do not act as long as the Turks do not act, and they do not force us to withdraw. It is also important to understand: whilst we maintain a security zone of only 78 square miles [approximately 202 square kilometres] in Syria, the Turks have, over the past few years, slowly annexed 3,500 square miles in northern Syria—roughly 5% of the country’s territory.”
According to The Jerusalem Post, with the exception of Tom Barrack, the US Special Envoy for Syria and Ambassador to Türkiye, senior US officials did not condemn the Israeli strike in Syria.
“The administration’s policy is that the previously agreed freeze should continue; that is why even Trump did not condemn the strike,” Leiter said.
Despite the tensions, Leiter emphasised Israel’s understanding that Syria is not seeking an escalation or war.
“It is clear to us that the Syrians do not want a confrontation with us. That is why we tell the Turks not to create conflict. There are multiple indications that the move planned by Türkiye was imposed on the Syrians,” the ambassador said.
Leiter argued that this apparent discord was also evident in the conflicting statements issued by Türkiye and Syria following the strike:
“Whilst Syrian Foreign Minister Shaibani acknowledged that a Turkish delegation was in Syria a few days before the strike, the Turks denied this. They need to resolve this matter between themselves.”
Leiter did not rule out a return to direct talks with Syria, as conducted in the past, but said conditions must be suitable.
“Negotiations can be resumed. We want to continue the face-to-face dialogue we previously conducted with the Syrians,” Leiter said.
Leiter added that Israel is not seeking a conflict with Türkiye and remains open to dialogue with Ankara.
“We are certainly open to dialogue with them, but judging by statements from senior officials in the country, they would prefer to wipe Israel off the map,” the Israeli diplomat said.
Alleging that Türkiye hosts Hamas leaders and “channels funds” to Hezbollah and Hamas, Leiter argued that it was inappropriate at this juncture for “Türkiye to begin expanding its influence in Lebanon and Syria.”
Leiter continued:
“Under current conditions, Türkiye cannot be a force that helps bring calm to the region. If only we could return to the state of relations between Jerusalem and Ankara from several decades ago. Back then, we would have been open to Türkiye’s influence in the region. But in an environment where Türkiye funds terrorist organisations, an increase in its regional influence makes no sense.”
Middle East
UAE halts trade with Iran after reported ballistic missile attack
The United Arab Emirates (UAE) has suspended commercial and economic relations with Iran after announcing that Tehran launched two ballistic missiles towards the Gulf state on Tuesday.
The UAE Ministry of Defence stated that air defence systems detected two ballistic missiles launched from Iran towards its territory.
The incident is considered Tehran’s first direct attack targeting the Gulf country since May.
The event prompted emergency telephone alerts to be sent to residents across the UAE.
The Ministry of Defence stated that assessments indicated the missiles targeted maritime traffic, adding that one missile fell into the sea outside UAE territorial waters and the other landed within territorial waters.
The UAE Ministry of Foreign Affairs later announced that “in light of regional tensions that undermine regional and international peace and security, all trade, commercial relations, and financial transactions with Iran have been halted until further notice.”
Iran denied any involvement in the missile attacks. Iranian Foreign Ministry Spokesperson Esmail Baghaei said the claim “contradicts the principle of good neighbourliness and undermines ongoing efforts to strengthen trust among regional countries.”
The missile strikes occurred after a period in which the UAE and Tehran had sought to reduce tensions between the two countries.
The bulk of Tehran’s military retaliation targeted neighbouring Gulf states, which Iran accused of facilitating US-Israeli attacks.
The UAE bore the heaviest brunt of Iran’s attacks against US allies in the Gulf, sustaining nearly 3,000 missile and drone strikes.
Exhibiting the most hawkish stance against Tehran among its Gulf neighbours, the UAE responded with dozens of strikes against Iran.
However, tensions between the UAE and Iran eased following a memorandum of understanding signed between Washington and Tehran in June.
After the agreement began to unravel in early July, Iran largely redirected its attacks towards Bahrain, Kuwait, and Jordan.
In recent months, the UAE reactivated diplomatic and economic channels with Iran while simultaneously strengthening its military ties with Israel and the US.
Tuesday’s missile strikes threaten to disrupt the atmosphere of normalisation that had returned to the UAE.
While Dubai’s financial district was once again filling with bankers, certain commercial activities between the emirate and Iranian ports had resumed.
Furthermore, several Iranian flights to the UAE had quietly resumed.
UAE authorities had also begun permitting the return of approximately 20,000 Iranians holding UAE residency permits who were outside the country when the war began.
UAE officials have repeatedly emphasised that the country seeks to avoid being drawn further into a broader regional war.
Nevertheless, efforts to de-escalate tensions between the UAE and Iran have come under increasing strain in recent weeks.
This month, the UAE accused Iran of attacking vessels belonging to the Abu Dhabi National Oil Company in the Strait of Hormuz.
Middle East
US considers land blockade on Iran involving Türkiye and neighbours
To date, the US has imposed sanctions on thousands of Iranian individuals and legal entities; however, the Tehran administration continues to bypass these restrictions by rapidly establishing new structures to replace those that have been blocked.
In an assessment citing expert opinions published by the Reuters news agency, the current situation was likened to a game of whack-a-mole.
Whack-a-mole is known as a game of agility and reflexes based on the concept of hitting plastic figures with a mallet as they pop up unexpectedly from their holes.
Speaking to the agency, experts outlined other options that Washington could deploy to increase pressure on Tehran and raise the efficacy of sanctions.
Potential measures include restrictions targeting independent Chinese refineries, known as “teapots,” which account for a quarter of China’s oil refining capacity.
China purchases more than 80% of the oil exported by Iran, and these refineries process the vast majority of those shipments. Nevertheless, these facilities have limited ties to the US financial system, rendering them partially protected against secondary sanctions.
Another option on the table is increasing pressure on major Chinese banks. The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has applied secondary sanctions to small firms based in China and Hong Kong accused of executing billions of dollars in transactions for Iranian oil.
The agency has also warned two large banks, though it has not yet included them on its sanctions list.
While taking steps against major banks could deter other financial institutions, such actions carry the risk of Beijing enacting retaliatory measures. Washington seeks to avoid such tension ahead of a potential meeting between US President Donald Trump and Xi Jinping in September.
Experts are also evaluating the possibility of enforcing a land blockade with the participation of Iran’s neighbours: Iraq, Türkiye, Pakistan, Azerbaijan, Turkmenistan, and Armenia.
The Trump administration holds various leverage mechanisms against such nations, including Pakistan, which is requesting a $10 billion swap line, and Türkiye, which seeks to rejoin the F-35 program. Analysts express, however, that implementing such a blockade on the ground and generating the expected pressure inside Iran would be difficult.
Trump has repeatedly voiced threats to impose secondary tariffs on countries that trade with Iran; however, the US Supreme Court struck down the legal basis for such measures.
On the other hand, a anti-Russia “crushing” sanctions bill passed by the Senate includes new restrictions on Iran and grants Trump tariff authority.
This bill must also pass a vote in the House of Representatives; however, the text faces opposition from both Democrats and certain Republican lawmakers.
US Treasury Secretary Scott Bessent announced in mid-August that Trump would disclose new measures designed to raise Iran’s economic isolation to an unprecedented level.
Stating that the US President had instructed the re-establishment of the maximum economic pressure policy against Tehran, Bessent said, “We have moved from Epic Fury to Economic Fury.”
Following Bessent’s statements, Bloomberg noted that Tehran has learned to manage the consequences of a naval blockade and thousands of restrictions. According to the agency’s analysts, the principal obstacle facing Washington is the close economic relationship between Iran and China; indeed, Beijing secures more than 90% of Iranian oil exports. Sanctioning the entities facilitating these purchases would directly reduce Tehran’s oil revenues, yet the US is avoiding this step for now.
Maritime traffic in the Strait of Hormuz remains restricted. On August 11, Iran conveyed its conditions for lifting the blockade in the strait to the US through intermediaries.
Tehran’s conditions included an end to threats and military actions, the lifting of the blockade and sanctions, compensation for damages, and the release of frozen assets.
On August 14, Trump claimed that following the end of the war with Iran, he would declare the Strait of Hormuz to be US territory. Responding to these statements, the Iranian Foreign Ministry warned that the Strait of Hormuz could not be seized “by a tweet, an aircraft carrier, an executive order, or a campaign speech.”
-
Interview6 days agoDaniel Davis warns US strategy fails against Iranian defense grid
-
Diplomacy6 days agoErdogan blocked CIA-Mossad plan for armed Kurdish uprising in Iran, report says
-
America6 days agoAIPAC super PAC pours millions into key Democratic primary races
-
Middle East6 days agoUS considers land blockade on Iran involving Türkiye and neighbours
-
Interview2 weeks agoQuincy Institute expert says the United States had no plan B
-
Europe6 days agoUkraine uses British drones for long-range strikes deep inside Russia
-
Opinion2 weeks agoThe U.S. Economy and NATO’s Function
-
America6 days agoUS-Brazil rift widens over proposed sanctions and trade tariffs
