Iraq and the United Arab Emirates (UAE) are expediting the development of alternative oil pipelines in response to the closure of the Strait of Hormuz, which has severely disrupted their crude exports. The Iraqi cabinet recently approved plans to accelerate crude exports through the Kurdistan-Turkey pipeline network, aiming to increase shipments from 220,000 barrels per day to 770,000 barrels per day. This route, which connects through Kurdistan to Turkey's Mediterranean port of Ceyhan, is expected to provide significant relief to Iraq's oil-dependent economy, which contributed 53% to its real GDP in 2025 according to the World Bank [1].
Data from QuantCube Technology, shared exclusively with CNBC, indicates that Iraq's overall exports have nearly ceased since the onset of the war, highlighting the country's heavy reliance on the Strait of Hormuz. In April, Iraq exported only 10 million barrels of oil through Hormuz, a sharp decline from 93 million barrels before the conflict began. Alan Lemangnen, a senior economist at QuantCube, emphasized Iraq's vulnerability due to its geographic dependence on Hormuz, stating that most, if not all, of Iraq's oil transits through this chokepoint [1].
Meanwhile, the UAE is accelerating the construction of its new West-East pipeline to Fujairah, aiming to double the Abu Dhabi National Oil Company's (ADNOC) export capacity. The project is expected to be operational in 2027. Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan called for the pipeline's expedited completion on May 15 to meet rising global energy demand. The UAE retains some export flexibility through other terminals, such as Fujairah, despite damage from recent attacks during the war [1].
However, alternative routes remain vulnerable. Saudi Arabia's East-West pipeline was attacked by Iran in April, and the Fujairah terminal has also faced disruptions from Iranian drone attacks. The combined available capacity of the East-West pipeline and the UAE pipeline to Fujairah is estimated at 3.5 to 5.5 million barrels per day, according to the International Energy Agency (IEA), though Saudi Arabia reported in March that its pipeline was not operating at full capacity [1].
CONCLUSION
The closure of the Strait of Hormuz has forced Iraq and the UAE to urgently pursue alternative oil export routes, with Iraq facing more severe disruptions due to its geographic constraints. While new pipelines and existing terminals offer some relief, ongoing regional conflict and attacks on infrastructure continue to threaten oil export stability and global supply.