Gulf Countries Diversify Oil Exports Amid Hormuz Blockages

The ongoing US-Israeli war against Iran has disrupted oil shipments through the Strait of Hormuz, which carried up to 20% of the world's oil and liquefied natural gas (LNG) before the conflict escalated.

In response, countries in the Arabian Gulf are investing in new pipelines to bypass blockages. Saudi Arabia is rerouting up to seven million barrels of oil per day (bpd) through an East-West pipeline connecting its Eastern Province oil fields to the Red Sea port of Yanbu.

The UAE is also developing a pipeline to double crude exports via Fujairah, a port on the Gulf of Oman that offers a direct route to Asia. However, this alternative route still poses risks due to its proximity to Iran and potential Houthi attacks in Yemen.