Gulf Nations Scramble for Alternative Export Routes Amid Strait of Hormuz Crisis

Gulf countries are seeking alternative oil and gas export routes due to the security crisis in the Strait of Hormuz after the joint US and Israeli attacks on Iran at the end of February prompted Tehran to close the vital waterway.

The closure, which exposed vulnerabilities in the region's energy infrastructure, has led to varying outcomes depending on the alternative infrastructure capacities and vulnerabilities among Gulf nations. Only Saudi Arabia and the United Arab Emirates (UAE) have active pipeline infrastructure able to bypass the strait.

Kuwait, Qatar, and Bahrain rely on maritime transit via the strait and have no alternative export capacity. Kuwait suffered massive economic disruptions, with its daily crude production plummeting from 2.6 million barrels in February to a low of 573,000 in May after its storage facilities maxed out.

The prolonged maritime transit suspension is estimated to have led to a shortfall of around 30 million metric tons in Qatar's 2026 LNG export targets, analysts say. The Qatari government is mediating US-Iran diplomatic talks alongside Pakistan to restore maritime security and reopen the Strait of Hormuz.