Israel's energy minister promotes an oil pipeline to avoid the Hormuz Strait.

Gulf countries could significantly lessen their reliance on oil shipments through the Strait of Hormuz by utilizing a pipeline that connects the Gulf to Europe via Israel, according to Israel's energy minister. This would also allow them to avoid disruptions in Red Sea shipping.

Following U.S. and Israeli strikes on Iran on February 28, which led Tehran to effectively close the strait, oil prices spiked. Though prices have since fallen due to a U.S.-Iran ceasefire, concerns linger about potential renewed tensions that could block the waterway.

"The Gulf nations prefer not to rely on Iran or the Houthis in Yemen for their oil exports, which are crucial for their economies," Eli Cohen, Israel's energy minister, told Reuters in an interview in Jerusalem. "Establishing a land route would allow them to sidestep both Iran and the Houthis... The most viable route is through Israel." The Houthis, backed by Iran, have repeatedly targeted shipping in the Red Sea in recent years. Though a pipeline through Israel has been suggested before, it was never pursued due to regional tensions.

Saudi Arabia is reportedly looking at increasing the capacity of its crude oil pipeline to the western Red Sea coast, allowing the kingdom and possibly its neighbors to transport more oil without passing through the Strait of Hormuz. Cohen noted that Israel already has a pipeline connecting its Red Sea city of Eilat to the southern Mediterranean port of Ashkelon, but additional infrastructure would be needed to facilitate connections with Arab countries willing to participate.

Cohen proposed a 700-km pipeline that could run from Saudi Arabia to Eilat, where oil could then travel through the Trans-Israel Pipeline to Ashkelon and be loaded onto tankers for transport to Europe. A member of Israel's security cabinet, Cohen commended the U.S. for its actions during the conflict with Iran, but indicated that Israel might have to take unilateral action against Tehran if the country continues to develop its nuclear weapons program. He expressed hope for a peace agreement with Lebanon, noting that Israel and the Iran-backed Hezbollah had recently agreed to a ceasefire.

On Monday, Israel announced a tender for further exploration of natural gas off its Mediterranean coast. Cohen mentioned that geological data suggests the presence of oil beneath the gas, which would require deeper drilling. He emphasized the importance of alternative energy, stating that at least 30% of electricity production is expected to come primarily from solar power by 2030.