The closure of the Strait of Hormuz amid escalating conflict in West Asia has laid bare the dangers of depending on a single maritime transit corridor, with a new report arguing that diversified energy networks — including overland pipelines — can constrain the aggressive behaviour of sovereign states. The findings come as the US-Iran conflict of 2026 continues to disrupt trade and energy flows, sending shockwaves through both regional and global markets.

Why the Strait of Hormuz Is Uniquely Vulnerable

Unlike other critical sea lanes, the Strait of Hormuz has no viable bypass. An article published by the US-based think tank Middle East Forum drew a sharp contrast with the Strait of Malacca, which offers alternative passages through the Sunda and Lombok straits. When Houthi rebels targeted commercial shipping in the Bab el-Mandeb Strait, vessels rerouted via the Cape of Good Hope to reach European and Asian markets — a costly but viable detour.

'For the Persian Gulf, the Strait of Hormuz constitutes the only entry and exit point,' the Middle East Forum article stated. Before the current conflict, nearly 20 million barrels of oil passed through the strait daily, underscoring the scale of the disruption.

Iran's Strategic Leverage and US Credibility at Stake

The report argued that Iran's blockade of the strait serves a dual purpose: inflicting economic pain on the global economy while simultaneously eroding the perception of the United States as the primary security guarantor in the Persian Gulf. 'For Washington to retain its position in the Middle East, and for the long-term health of the global economy, addressing the Hormuz vulnerabilities is critical,' the think tank noted.

This framing positions the crisis not merely as an energy supply problem but as a test of American strategic credibility in a region where its influence has been repeatedly contested.

Existing Pipeline Alternatives and Their Limits

The report highlighted two existing bypass infrastructure projects. In the 1980s, Saudi Arabia constructed an approximately 750-mile East-West oil and gas pipeline network linking the Abqaiq oil processing facility in eastern Saudi Arabia to the Red Sea port of Yanbu, with a capacity of around 7 million barrels per day. The United Arab Emirates (UAE) inaugurated a separate oil pipeline from Habshan to the Gulf of Oman port of Fujairah in 2012.

However, both alternatives face significant constraints. Houthi drone attacks have disrupted efforts to expand Saudi pipeline capacity. Meanwhile, the UAE is working to bring a new pipeline to Fujairah online by 2027, though Iran has reportedly targeted Fujairah oil facilities during recent hostilities — directly threatening the viability of this alternative route.

A 21st-Century Pipeline Network as the Long-Term Fix

According to the report, as US President Donald Trump seeks an exit strategy from the Iran crisis, he could work with regional partners to develop what the think tank described as a 21st-century version of the Stilwell Road — a network of pipelines connecting the Persian Gulf with the Mediterranean Sea and the Arabian Sea. Such a network, the report argued, could generate substantial economic benefits for both the United States and the broader global economy, while reducing the geopolitical leverage that chokepoints like Hormuz currently afford adversarial states.

With the Iran conflict showing no immediate signs of resolution, the pressure to accelerate alternative infrastructure is likely to intensify in the months ahead.