Backup Plans

17 July 2026: How will additional pipeline capacity impact tanker trades? When the US-Israeli war against Iran broke out, leading to the effective closure of the Strait of Hormuz (SOH), quick calculations showed that about 20 million barrels per day (Mb/d) of oil and oil products would be impacted. Many of the countries in the Middle East rely heavily on the SOH to export their crude oil and refined products. Only two countries (Saudi Arabia and the UAE) have access to meaningful pipeline capacity circumventing the Strait. The crisis in Hormuz has led to the creation of new and the revival of old plans to build and/or expand pipeline capacity to circumvent the SOH. In this opinion we will discuss some of these options, their timing and what the impact may be on the tanker market in the future. Please fill out the form to read the article.