A major new oil pipeline to bypass the Strait of Hormuz is close to 50% complete—further evidence of the potential long-term effects of the Iran war on the global energy trade.
Sultan Ahmed Al Jaber, chief executive of the Abu Dhabi National Oil Company, said the project is being accelerated toward a planned completion date in 2027.
“Right now, too much of the world’s energy still moves through too few choke points,” Al Jaber said.
“That is exactly why the UAE made the decision more than a decade ago to invest in infrastructure that bypasses the Strait of Hormuz.”
He said the UAE’s second east-west pipeline is now almost 50% complete.
Last week, the UAE said construction of the pipeline would be accelerated to expand capacity through Fujairah, a port on the Gulf of Oman, beyond the Strait of Hormuz.
An existing pipeline allows the UAE to bypass Hormuz, but only for a portion of its exports.
Al Jaber warned that narrow maritime chokepoints like Hormuz present a clear threat to energy security.
“Energy security is no longer just about your ability to continue to produce,” he said.
“It is about routes, access, storage, and redundancy.”
“In just two months, the world drew down around 250 million barrels from storage. We have 30 to 35 days of effective cover. We need to at least double that.”
Al Jaber’s comments came as the International Energy Agency warned oil markets could enter a “red zone” if disruption continues as a result of the effective closure of the Strait of Hormuz.
Over the weekend, the US and Iran have drawn closer to signing a deal to re-open the Strait of Hormuz and end hostilities.
A US official spoke to Axios and told the outlet there would be a 60-day ceasefire extension, during which the Strait of Hormuz would be reopened; Iran would be able to sell oil freely again; and further negotiations would be held on Iran’s nuclear ambitions.
The deal could be announced today.
According to the deal outline seen by Axios, the US and Iran would sign a memorandum of understanding that would last 60 days and could be extended by agreement of both parties.
During the 60-day period, the Strait of Hormuz would fully reopen, with no tolls, and Iran would agree to clear the mines it has laid.
In exchange, the US would lift its blockade and some sanctions to allow Iran to resume selling oil.
The official who spoke to Axios said the key principle of the agreement is “relief for performance.”
The sooner Iran let shipping resume, the faster the blockade would be lifted.
The official also said the US would not unfreeze assets and fully life sanctions until “tangible concessions” were made by Iran.
The draft memorandum also includes commitments from Iran never to pursue nuclear weapons and to negotiate the removal of its stockpile of enriched uranium.
US forces would stay in the region for the 60-day period and only leave if a final deal is reached.
The memorandum also states that the war between Israel and Hezbollah in Lebanon would end.
Prime Minister Netanyahu is understood to have voiced his concern about that provision in a phone call with President Trump on Saturday evening.
“Bibi [Netanyahu] has his domestic considerations, but Trump has the interests of the US and the global economy to think about,” the U.S. official said.
In a post on Truth Social on Saturday, President Trump hailed the negotiations and said an agreement is near.
“An agreement has been largely negotiated, subject to finalization between the United States of America, the Islamic Republic of Iran, and the various other Countries, as listed,” President Trump wrote.
4 Responses
Are they kidding? Nothing says choke point more than a pipeline. They may as well print the words “bomb me” along it.
And, as long as UAE plays ball with Israel…..the pipeline wont get blown up.
Zelensky will be happy to do it so he can stand in front of any camera in the room and blame Russia.
…which the Strait of Hormuz would be reopened; Iran would be able to sell oil freely again; and further negotiations would be held on Iran’s nuclear ambitions.
Just enough time for them to RE-ARM with munitions and start the process AGAIN.
Rinse and repeat.
Laughing about the profits along the way.
You fool