The Hormuz Crisis Demands Massive International Investment in Bypass Energy Infrastructure
Source: Amos Hochstein. "The Hormuz War Will End - The Atlantic." April 7, 2026. www.theatlantic.com
The Gist
Iran's control over a tiny 21-mile strait has caused the world's worst energy crisis ever. The only way to prevent this from happening again is to build massive new pipelines and energy routes that go around the strait completely, and the U.S. should lead this effort.
Conclusion
The world must make a massive, internationally coordinated investment in energy corridors that bypass the Strait of Hormuz entirely to prevent future energy crises
Premises
- The current Hormuz crisis has removed 9-10 million barrels of oil daily from global markets, creating the worst energy crisis in history
- Military operations, diplomatic cease-fires, or strategic reserves cannot remedy the vulnerability of global energy supply to Iranian coercion
- Only two major pipeline systems currently bypass Hormuz, both running at maximum capacity and carrying only crude oil, not refined products
- Substantial portions of the Gulf with significant hydrocarbon reserves have no bypass route at all
- Previous infrastructure investments (like the Petroline and ADCOP) have proven their value during this crisis by providing alternative routes
- The U.S. has successfully led similar infrastructure projects before (Marshall Plan, Caspian pipelines, European energy security) that prevented or mitigated crises
- When the war ends, a rare window for bold collective action will open that must be seized
Assumptions
- The Hormuz war will eventually end, creating an opportunity for infrastructure development
- International cooperation on energy infrastructure is achievable with proper U.S. leadership
- Fossil fuel infrastructure remains necessary despite the clean energy transition
- Private markets alone will not fund the necessary long-term strategic infrastructure
- China or other actors will fill the leadership void if the U.S. does not act