Global energy markets are in severe turmoil due to the escalating conflict between the US, Israel and Iran in the Middle East. The crisis has had the biggest impact on the Strait of Hormuz, which under normal circumstances supplies about 20 percent of the world’s crude oil and liquefied natural gas.
Tanker traffic has been badly affected after Tehran moved to block the movement of ships through this sea route. In such a situation, to protect the global oil markets from shocks, Saudi Arabia has resorted to its strategic infrastructure East-West crude oil pipeline.
What is East-West Pipeline:
This huge pipeline network is also known as Petroline. The approximately 1,200 kilometer long pipeline connects Saudi Arabia’s eastern oil production centers to export ports located on the Red Sea coast.
The system carries crude from the huge Abqaiq oil processing facility in the eastern province to the Red Sea port city of Yanbu. Through this, oil can be sent directly to global markets, eliminating the need to pass through the Strait of Hormuz.
This pipeline was started in 1981 during the Iran-Iraq war. At that time its objective was to reduce dependence on sea routes in case of war or regional crisis. Initially it was a 48-inch diameter pipeline with a capacity of approximately 18.5 lakh barrels per day. A second 56-inch line was added later in the 1990s.
After continuous expansion and modernization, the network now has a total capacity of approximately 7 million barrels per day, making it the largest bypass oil infrastructure in the Gulf region.
After the Hormuz route was disrupted, Saudi state oil company Saudi Aramco has rapidly increased the use of this pipeline. Before the crisis, about 2.8 million barrels of oil per day were being shipped through the pipeline, but in recent circumstances this has been increased to almost full capacity.
Aramco Chief Executive Officer Amin Nasser said in a conference call last week that the pipeline would soon reach its maximum capacity. He said that due to the sudden crisis, the global tanker fleet also had to be redeployed according to new routes.
Under the new arrangement, most tankers are now loading oil from the Red Sea port of Yanbu instead of the Persian Gulf. Saudi Arabia exports about 7 million barrels of crude oil per day under normal circumstances. By making full use of the East-West Pipeline it has been able to maintain about 70 percent of its normal exports.
This has helped in protecting the global oil supply from sudden major shocks. Still there remains uncertainty in the markets. By March 16, 2026, the price of Brent crude reached above $104 per barrel, while US WTI hovered around $99 per barrel.
Although the pipeline offers an option to avoid the Strait of Hormuz, it has also created some new security risks. Tankers originating from Yanbu must further pass through the Bab el-Mandeb Strait, a sensitive sea route located at the southern end of the Red Sea. Due to regional tension related to Houthi terrorists, this route is also not completely risk free.
Other alternative pipelines in the area
Another important project bypassing Hormuz in the Gulf region is the Abu Dhabi crude oil pipeline, also known as the Habshan-Fujairah Pipeline. It connects the UAE’s oil fields to the port of Fujairah and has a capacity of approximately 1.8 million barrels per day.
However, the combined capacity of Saudi Arabia’s pipelines is far less than the vast volume that passes through the Strait of Hormuz under normal circumstances. Therefore, if this crisis continues for a long time, it could have a serious impact on global energy markets.
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