New infrastructure projects and trade deals are redirecting the flow of fossil fuels around the Strait of Hormuz. The war has been a boon for sales of renewable-power equipment, as energy-importing countries race to untangle themselves from volatile fossil supply chains. But because the world still runs primarily on oil and gas, there’s also renewed momentum behind infrastructure projects designed to break bottlenecks like the strait.
The UAE said it is racing to complete a new pipeline by next year that will double its oil export capacity bypassing the waterway, while the country’s Mubadala Energy signed off on a major new investment in a US LNG export terminal. Iraq is working to increase its exports through Türkiye. India struck a deal with the UAE to build new strategic oil and gas reserves, and Japan and South Korea are closing in on something similar.
One more breakthrough could come this week: Russian President Vladimir Putin meets with Chinese leader Xi Jinping about finally completing the long-stalled Power of Siberia 2 gas pipeline, in what could be a more substantive fossil fuel trade takeaway than what US President Donald Trump was able to secure in his own meeting with Xi last week.