Tipsheet

The UAE Has a Plan to Circumvent the Iran and the Strait of Hormuz Now That It's Left OPEC

The United Arab Emirates (UAE) has announced it has fast-tracked a major oil pipeline project that could not only double the country’s oil exports but also be built to completely circumvent the Strait of Hormuz, following its departure from the OPEC and OPEC+ oil cartels just weeks ago.

The project is expected to take 18 months, with completion in 2027, and would increase the UAE’s oil export capacity by 70 percent above pre-war levels.

The move reflects shifting trends in the Middle East, as many Gulf states have moved closer to Western alignment, including the UAE and Saudi Arabia, amid U.S. pledges to confront Iran, the leading regional power and main source of Middle Eastern instability. 

Just days ago, it was revealed that the UAE and Saudi Arabia had joined the United States during Operation Epic Fury in covert missile strikes, easing concerns that their earlier pledges of support were merely posturing. The UAE, in particular, has faced growing threats from Iran, including drone and missile attacks last week, one of which may have sparked a fire at an oil facility.