Revived Eilat-Ashkelon pipeline could introduce new dynamics in the politics of the Middle East

Israel has proposed reviving the Ashkelon-Eilat pipeline to divert oil cargo away from the Strait of Hormuz and the Bab al-Mandeb in the Red Sea. The war between Saudi Arabia and the Ansar Allah Houthis continues to disrupt oil exports, particularly for Saudi Arabia, at the Red Sea port of Yanbu. Saudi Arabia has been using its Yanbu port, which has a long pipeline exporting its own oil. The plan proposes a new pipeline from Saudi Arabia that will join its Ashkelon-Eilat pipeline in the Red Sea via Jordan.  

According to reports in Haaretz and other outlets, Israeli Prime Minister Benjamin Netanyahu offered Israeli military assistance to help Saudi Arabia fight the Iran-backed Houthis, viewing it as a potential pathway toward normalisation.  Fearing a backlash, Mohammed Bin Salman rejected the offer.

Israel is desperate to normalise relations with Saudi Arabia. Any formal partnership between Saudi Arabia and Israel could be seen as an act of capitulation by Bin Salman and an achievement for Israel, particularly for Benjamin Netanyahu. Notwithstanding Bin Salman’s rejection of Israeli advances, Netanyahu continues to court Saudi attention. Israel has pitched to the US and the Gulf nations the idea of using the Eilat-Ashkelon pipeline as a land bridge for Gulf oil exports. Netanyahu and his Energy Minister, Eli Cohen, are championing the plan to revive an old oil pipeline that runs from the port city of Eilat to Ashkelon.

The Eilat-Ashkelon pipeline was originally built in 1968 as a secret joint venture between Israel and Iran under the Shah. Following the 1979 Islamic Revolution, the two nations became bitter adversaries, and Iran canceled the project.

If this project succeeds, it could be a new lifeline and an alternative route for exporting oil from the region. 

These plans come as Al Ansar Houthis continue to target strategic facilities in Saudi Arabia, including the port of Yanbu on the Red Sea, which is fed by the Petroline pipeline. The Petroline pipeline is 1200 kilometers long, running from Abqaiq in eastern Saudi Arabia to the port of Yanbu on the Red Sea. Its maximum transport capacity is 7 million barrels of oil per day. The plan is to build a new inland pipeline from Saudi Arabia through Jordan to connect to existing infrastructure in Israel, enabling oil exports from the port of Ashkelon, a few kilometers north of Gaza, and reducing Gulf countries’ reliance on the Strait of Hormuz.  

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The latest escalation between Saudi Arabia and the Al Ansar Houthis began when Saudi Arabia bombed Sanaa Airport, preventing a delegation of the Al Ansar Houthis returning from the funeral of Ayatollah  Khamenei from landing in Sanaa.  This was a miscalculation by Saudi Arabia’s Crown Prince and de facto leader, Mohammed bin Salman. Before the bombing, there was a truce between the Al Ansar Houthis and Saudi Arabia. The conflict between Saudi Arabia and the Houthis started in 2015, when Saudi Arabia lobbied the Gulf Cooperation Council (GCC) to wage war against the Houthis to support the President of Yemen, Abdrabbuh Mansour Hadi, the internationally recognized president of Yemen. In 2022, Saudi Arabia and the Houthis entered into a truce that saw attacks reduced from both parties. Large-scale attacks have decreased significantly since 2022; however, the two parties have never agreed to a permanent ceasefire.  

The US, Pakistan, and other Saudi allies have been calculative in their efforts to assist Saudi Arabia. Islamabad maintains that its support is strictly defensive and limited to protecting Saudi territory. It has deployed several military personnel and assets to Saudi Arabia under the activated Mecca Joint Defense Agreement. According to CNN, the U.S. is helping Saudi Arabia against the Houthis by deploying 100 to 200 military advisers to provide intelligence and targeting support, supplying billions in weapons and missile defence systems (such as Patriot and THAAD batteries), and issuing regional security warnings. The Egyptian House of Representatives has delayed the vote authorizing the armed forces to assist Saudi Arabia until 26th October 2026.  Reuters reports that Saudi Crown Prince Mohammed bin Salman also asked Syrian President Ahmad Al Sharaa for assistance against Iran-backed Houthi rebels during an October 2026 meeting in Riyadh.  

Israel is the only country that is open to offering blanket assistance that traditional allies of Saudi Arabia, including the US, have been reluctant to offer.  Saudi Arabia, especially Bin Salman, is tempted.  However, accepting offers from Israel could legitimise Israel, and entering into any sort of deal could draw condemnation, lead to the isolation of Saudi Arabia, and be the end of Saudi Arabia’s leadership of the Muslim world.

 Importantly, it could provide Israel with resources and possible new leverage against the Gulf countries.

Significantly, as US funding of Israel increasingly comes under pressure, the proposed pipeline project could become an alternative financial source of funding for Israel.  However, as existential pressures on Saudi Arabia and on Mohammad bin Salman personally increase, all cards are on the table.

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