Gulf Oil Producers Seek Shared Costs for Hormuz Alternatives

Top executives from major Gulf oil producers have urged importers to help shoulder the costs of developing new shipping routes and storage facilities to bypass the Strait of Hormuz. Speaking at the 2026 Energy Intelligence Forum in London, Saudi Aramco CEO Amin Nasser emphasized that no single country should bear the burden alone, noting that attacks on energy infrastructure have global consequences. He stressed that oil and gas infrastructure is a collective necessity for both producers and consumers.

Kuwait Petroleum Corporation (KPC) chief executive Sheikh Nawaf Saud Al-Sabah revealed that Kuwait is in discussions with European partners to store more refined petroleum products closer to consumers in Europe. He highlighted the need for logistical investments to ensure storage capacity is available. Since the war began in late February and Iran moved to close the Strait of Hormuz, Gulf producers have had to find alternative routes and methods to transport oil.

Saudi Arabia quickly rerouted most of its crude oil flows to the Red Sea via the East-West pipeline, but the infrastructure was attacked last month and shut down for two weeks for repairs. Kuwait is now intensifying efforts to set up storage sites outside the region, while Iraq is considering reviving an old pipeline to Syria to bypass the Strait of Hormuz.