Strait of Hormuz crisis drives push to diversify global energy routes

A new US-backed proposal to build a network of onshore energy pipelines that would bypass the Strait of Hormuz is drawing attention as tensions in the region reveal a critical vulnerability in the global energy system.

A policy brief reviewed by Fox News Digital outlines the concept known as “ARAM Express,” a proposed consortium between the United States and its Gulf partners to develop a multifaceted onshore network for oil, gas and petrochemicals, led by Richard Goldberg of the Foundation for Defense of Democracies.

In addition to pipelines extending westward to the Red Sea and the Mediterranean, the plan also envisages southern routes towards the Arabian Sea; This will create numerous export routes that will reduce dependence on the strait, through which roughly one-third of the world’s seaborne oil currently flows.

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The bid will rely on broad international participation, with European and Asian buyers investing in infrastructure and securing long-term supply agreements.

“European buyers are desperate for long-term supply flexibility, and Asian customers are equally affected,” Goldberg said. “Even China cannot tolerate the risk of sustained disruption.”

The move comes as Iranian threats to commercial shipping and ongoing U.S. efforts to secure the waterway under President Donald Trump’s “Project Freedom” highlight the risks posed by a single transit point to global energy flows.

Roughly a third of the world’s seaborne oil passes through the narrow waterway, making it a critical artery for global markets. With Iran threatening shipping and U.S. forces now guiding ships through the strait as part of President Donald Trump’s “Project Freedom,” the White House is framing the crisis in global terms.

White House spokesman Taylor Rogers said, “The President will not allow Iran to hold the global economy hostage and undermine the free flow of energy,” and described the launch of the “Freedom Project” as a humanitarian effort to restore transportation in the Bosphorus.

This framework dovetails with a growing view among U.S. officials and analysts that the risk is not only immediate but also structural.

US Ambassador to the United Nations Mike Waltz signaled that Washington’s partners are already looking beyond the strait.

“I know our Gulf partners and allies are seriously considering this,” Waltz told Fox News Digital during a conference call with reporters on Monday when asked about long-term alternatives.

“I know they’re obviously looking for additional alternatives to diversify their pathways and diversify their economies,” he added.

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The increase in regional piracy risk is exacerbated by volatility in the Strait of Hormuz as Iran-backed threats persist in the Persian Gulf and global energy flows change. (Mass Communications Specialist 1st Class Cassandra Thompson/U.S. Navy via Getty Images)

A vulnerability that lasts years

The idea that Ormuzd represents a structural weakness is not new. But so far, this has been largely tolerated as global markets rely on stability in the Gulf to keep energy flowing.

This assumption is currently under pressure.

Although US naval power has been deployed to ensure the security of the waterway, the current crisis has highlighted how quickly disruption, and even the threat of that disruption, can spread across global supply chains.

“This is not just a long-term idea anymore,” said Rich Goldberg of the Foundation for Defense of Democracies think tank. “As long as the regime in Tehran continues, there is a real threat to the Strait of Hormuz.”

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The bid will rely on broad international participation, with European and Asian buyers investing in infrastructure and securing long-term supply agreements. (US Central Command)

Saudi Arabia: Building around risk

Saudi Arabia stands out as the country that has invested the most in reducing dependence on Hormuz among the Gulf countries.

The East-West pipeline allows crude oil to travel from eastern fields in the Gulf to the port of Yanbu on the Red Sea, bypassing the strait entirely. From here, shipments can move towards Europe, Africa and Asia without entering the transit point.

“Saudi Arabia handled the Strait of Hormuz risk with planning, not panic,” said Saudi geopolitical analyst Salman Al-Ansari.

“The East-West pipeline is strategic insurance,” he told Fox News Digital, “A Hormuz closure would be disruptive, but not paralyzing. Saudi Arabia has spent years reducing that vulnerability, and today it is uniquely positioned to absorb shocks and keep global flows moving.”

Al-Ansari argued that the kingdom’s strategy goes beyond energy exports, positioning the country as a broader logistics hub.

“Ports, pipelines, land bridges, storage and Red Sea access are all part of the Saudi emergency architecture,” he said.

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In addition to pipelines extending westward to the Red Sea and the Mediterranean, the plan also envisages southern routes towards the Arabian Sea; This will create numerous export routes that will reduce dependence on the strait, through which roughly one-third of the world’s seaborne oil currently flows. (Fadel Senna/AFP via Getty Images)

The disintegration of the UAE and the Gulf model

Saudi Arabia is not the only player adapting.

The United Arab Emirates has also developed alternative export capacity through a pipeline outside the Strait of Hormuz to Fujairah.

At the same time, some analysts argue that recent regional dynamics point to a deeper shift that extends beyond infrastructure to the political structure of the Gulf.

Israeli entrepreneur and former advisor to former Israeli President Shimon Peres, Yonatan Adiri, said that the traditional unified Gulf energy system model centered on Hormuz is beginning to collapse.

“The whole agreement is starting to expire,” Adiri said, referring to long-standing reliance on the strait as a central artery for Gulf exports.

He noted the emerging economic and geopolitical realignments, including new corridors and shifting alliances that are fragmenting the region’s traditional energy architecture.

“The UAE’s move away from OPEC is not just about production policy,” Adiri said, referring to the country’s decision to leave the Organization of Petroleum Exporting Countries as of May 1, 2026. he said. “This reflects a broader shift towards an independent strategy that builds its own routes, partnerships and levers rather than relying on a collective system.”

According to Adiri, these changes are driven in part by broader global competition, particularly efforts by the United States and its partners to counter China’s Belt and Road Initiative.

“The whole system is being rethought,” he said, describing a shift towards diversified routes that reduce dependence on single chokepoints.

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Cargo ships are anchored in the Gulf near the Strait of Hormuz, as seen from north of Ras al-Khaimah, United Arab Emirates, on March 11, 2026. (Reuters/Stringer/File Photo/File Photo)

Unequal exposure across the Gulf

Despite these developments, not all Gulf countries are equally prepared.

“If you’re Kuwait, you’re in a world of pain,” Goldberg said, pointing to countries where there are no meaningful alternatives to seaborne exports.

Qatar, one of the world’s largest exporters of liquefied natural gas, remains heavily dependent on the strait, with limited options for rerouting supplies if shipping is disrupted.

This unequal exposure could reshape regional dynamics and provide countries with alternative routes greater resilience and leverage against future crises.

Political boundaries and long-term questions

While technical conditions for alternative routes are strengthening, political restrictions remain.

One of the most sensitive issues is whether future corridors will include Israel, even indirectly.

“When it comes to routes covering Israel, even indirectly, politics is extremely difficult under the current conditions,” Al-Ansari said. he said. “I really don’t see that happening right now.”

He also suggested that such collaborations could become more realistic in the future under different political conditions.

A system in transition

For now, the United States and its allies remain focused on stabilizing the emergency in the Strait of Hormuz, ensuring that ships can pass safely and global markets continue to function.

But as tensions continue, the current crisis forces a broader reassessment.

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While technical conditions for alternative routes are strengthening, political restrictions remain. (Altaf Kadri/Associated Press)

The question is no longer only how to ensure the security of the Bosphorus, but also whether the global energy system can afford to be as dependent on it as it has been for decades.

Experts suggest that if current trends continue, Hormuz may remain critical but no longer dominant, as countries invest in new routes, new partnerships and a more diversified energy map.

Fox News Digital reached out to Saudi Arabia and the UAE for comment but did not receive a response by the time of publication.