# Dependence on the Strait of Hormuz Declines Global oil markets are becoming independent of the Strait of Hormuz. - **Source:** [Fortune | FORTUNE](https://brifing.si/source/769282ef-327a-4454-909a-3c7936216004) - **Published:** 2026-07-19 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/0afc44a3-8688-47a3-8be7-39477325d906 ## Importance of the Strait of Hormuz The Strait of Hormuz is a strategic waterway through which a significant portion of the world's oil trade passes. Under Iran's control, this strait plays a critical role in global energy markets. ## US Alternative Route The US attempted to create an alternative route bypassing the Strait of Hormuz controlled by Iran but was unsuccessful. Iran's drone and missile attacks scared off commercial vessels. ## Reactions from India and Japan India banned its crew from transiting the Strait of Hormuz. The chairman of the Japan Foreign Trade Council stated that the strait is impassable for commercial ships. ## Pipeline Solutions To ensure oil supply, land routes such as Saudi Arabia's East-West pipeline and the UAE's Habshan-Fujairah pipeline were utilized. Capacities of these pipelines are being increased. ## New Projects The UAE's new West-East pipeline has been accelerated and could be operational next year. A consortium including Chevron plans to rebuild the Kirkuk-Baniyas pipeline in Iraq. ## Future Predictions According to Goldman Sachs, dependence on the Strait of Hormuz could drop below 60% in the coming years. Pipeline projects will significantly reduce this dependence. ## Sources covering this story - https://fortune.com/2026/07/19/global-oil-market-post-iran-export-offsets-hormuz-new-pipline-capacity/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._