The UAE announces the "Hormuz Zero Dependence" plan, accelerating investments in pipelines and ports.

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The Strait of Hormuz is about to reopen, but the Gulf oil-producing countries have decided not to wait for the next crisis.

According to the latest Bloomberg report, UAE Minister of Foreign Trade Thani Al Zeyoudi publicly stated that the UAE is advancing a clearly targeted energy infrastructure plan—to achieve "zero dependence" on the Strait of Hormuz.

"We are moving towards zero dependence on Hormuz, and this direction will not change whether the strait is open or not," Thani Al Zeyoudi said in an interview, "The strait will reopen, and we hope this happens soon, but we will not stop the new plan."

The background: The US-Iran conflict led to the effective blockade of the Strait of Hormuz for several months, forcing global supply chains for crude oil, refined oil, and liquefied natural gas to reorganize. Currently, the US-Iran memorandum of understanding is expected to be officially signed as early as this Thursday or Friday, and the strait is likely to resume passage within a few days—but this crisis has made Gulf oil producers realize that the risk of relying on a single maritime channel can no longer be ignored.

Pipelines, Railways, Ports: UAE's Bypass Blueprint

The UAE's plan covers pipelines, railways, and highways, with the core being the establishment of a land corridor from Persian Gulf ports to ports along the Gulf of Oman. Target nodes include Dibba, Fujairah, Khor Fakkan, and at least one newly built port.

Abu Dhabi has announced plans to rapidly advance a second crude oil pipeline to Fujairah before 2027 and is also evaluating a third oil pipeline as well as bypass export options for energy products such as liquefied natural gas and petrochemicals.

However, pipelines can only solve limited problems. While crude oil can be re-routed via pipelines, it's much more difficult to transship goods such as liquefied natural gas, aluminum, and container imports. Dubai's Jebel Ali Port is the largest container hub outside Asia in the world; shifting more cargo to eastern ports would increase inland transportation costs and lengthen delivery times.

Saudi Arabia at Full Capacity, Iraq Also Taking Action

The UAE is not alone. In the first month of the conflict, Saudi Arabia's East-West pipeline was already running at full capacity, transferring 7 million barrels per day from Persian Gulf loading ports to Yanbu port on the Red Sea for export.

The Iraqi cabinet has also recently approved a plan to accelerate the crude oil export of the Kurdistan–Turkey pipeline, with the target of increasing daily export volume from the current 220,000 barrels to 770,000 barrels, more than double the increase.

However, Iraq faces a more difficult structural predicament. QuantCube Senior Economist Alan Lemangnen said in an interview with CNBC, "Iraq's situation is much more complicated, because we know that almost all, if not all, of its oil must pass through the Strait of Hormuz."

Kuwait is also actively seeking a way out. Sheikh Khaled Ahmad Al-Sabah, Director of International Marketing at Kuwait Petroleum Corporation, said earlier this month that Kuwait has held consultations with Saudi Arabia and the UAE on potential cross-border pipelines, exploring how to deliver Gulf crude oil to buyers without relying on Hormuz.

The Strait of Hormuz is the "throat" of the global energy market, but with Gulf oil-producing countries accelerating the layout of alternative routes, the value of this bargaining chip is declining.

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