Gulf states scramble for Strait of Hormuz alternative

Gulf nations are rushing to secure alternative routes for oil shipments in the face of prolonged blockades around the Strait of Hormuz. Iran has insisted the waterway remain closed unless the US agrees to the June framework agreement and compensates Tehran for alleged violations. President Donald Trump stated on Monday that the US Navy controls the Strait of Hormuz, which is a crucial oil shipping route carrying around 20% of global crude exports from the Persian Gulf to markets worldwide.

Saudi Arabia has successfully redirected substantial volumes through the East-West Pipeline from its eastern oil fields to the Red Sea port of Yanbu, keeping shipments to global markets despite the Hormuz closure. UAE has had less success, with its alternative ports seeing a decline in cargo during the Iran war. The Gulf states are exploring longer-term solutions, such as pipelines connecting Iraq with Oman and Jordan, and longer sea routes around the African continent.

However, these projects are expensive and time-consuming, and rerouting ships around the Cape of Good Hope adds significant transport costs. Despite these challenges, Israeli Prime Minister Benjamin Netanyahu has called for alternative routes through the Arabian Peninsula to Israel's Mediterranean ports, arguing that such a network would eliminate chokepoints permanently.