Saudi Arabia is considering expanding the capacity of its critical East-West crude oil pipeline to the western Red Sea coast, according to five sources close to the matter.

The strategic move would allow the kingdom and potentially its Persian Gulf neighbours to transport more oil while completely bypassing the volatile Strait of Hormuz.

Constructed in the early 1980s, the East-West pipeline currently transports up to 7 million barrels per day to the Red Sea port of Yanbu, with the current geopolitical tension making it a vital strategic asset in the region.

State-backed oil giant Aramco reported in May that about 2 million barrels per day supply west coast refineries, while roughly 5 million barrels per day are designated for export.

Sources say Saudi Arabia is in preliminary talks with neighbouring countries to boost capacity by 1 million to 2 million barrels per day.

The expansion project would take years to complete, cost billions of dollars, and require adjustments to the pricing mechanism of Saudi crude.

It remains unclear whether Aramco will upgrade existing infrastructure or construct a new pipeline, though sources note the expansion could include a smaller secondary pipe for refined oil products.

The conflict has severely disrupted regional energy infrastructure. Iran’s blockade of the strait previously forced Gulf producers to shut in up to 12 million barrels per day, causing global energy prices to surge.

While a recent preliminary deal between the United States and Iran has partially resumed flows, volumes remain well below pre-war levels.

Iraqi output collapsed from 4.3 million barrels per day to under 1.5 million in May, Kuwait declared force majeure in March, and Bahrain’s Sitra refinery suffered multiple missile strikes.

Kuwait, Bahrain, and Qatar currently lack alternative routes to bypass Hormuz. Regional energy officials, including Kuwait Petroleum Corp. CEO Sheikh Nawaf al-Sabah, confirmed that active discussions are underway to accommodate neighboring barrels.

Aramco declined to comment, and government offices in Saudi Arabia, Bahrain, Iraq, and Qatar did not immediately respond to requests for comment.