Gulf States Accelerate 11 Million bpd Bypass Plans After Iran Disrupts Hormuz
Updated
Updated · Modern Diplomacy · Jun 18
Gulf States Accelerate 11 Million bpd Bypass Plans After Iran Disrupts Hormuz
3 articles · Updated · Modern Diplomacy · Jun 18
Summary
Around 11 million barrels a day of Gulf oil production was halted during the Iran conflict, pushing governments and energy companies to fast-track alternative export routes, pipeline projects and overseas investments.
Iran showed it could disrupt the Strait of Hormuz with drones, mines and small vessels, overturning the long-held assumption that the waterway carrying about a fifth of global oil and LNG would stay open.
Saudi Arabia and the UAE emerged better positioned because their Red Sea and Fujairah infrastructure preserved part of their exports, while Iraq, Qatar and Kuwait remain far more exposed to any renewed closure.
For Qatar and Kuwait, bypassing Hormuz may require new pipelines through neighboring states, creating strategic dependencies they have long tried to avoid.
The shock is likely to redirect Gulf infrastructure spending and alliances for years, while reshaping oil and LNG trade routes, investor risk models and energy security planning in Asia and Europe.
Will the Hormuz crisis permanently shift global energy power away from the Middle East, or just create new chokepoints?
The Strait is closed, prices are soaring. Is the fragile ceasefire enough to prevent a worldwide recession?
As the world scrambles for energy, will this crisis accelerate a green transition or entrench fossil fuel dependency elsewhere?
Strait of Hormuz Crisis 2026: Iran’s Toll System, Gulf Energy Disruption, and the Global Economic Shock
Overview
The report traces how the outbreak of war in Iran in early 2026 led the Islamic Revolutionary Guard Corps to seize control of the Strait of Hormuz, effectively closing it to most naval traffic. This closure triggered severe economic strain worldwide, as vital oil and gas shipments were disrupted. The United States responded with a naval blockade, but failed to reopen the Strait. In response, Iran and Oman introduced a new toll system for ships, further complicating global trade. These cascading events have forced Gulf states to seek alternative export routes and accelerated global shifts in energy security, trade, and geopolitical alliances.