Despite the agreement between the United States and Iran expected to lead to the full reopening of the Strait of Hormuz, after more than three months of closure to commercial traffic due to the war, the main Gulf oil-exporting countries are nonetheless intensifying negotiations to build new infrastructures capable of bypassing the strategic waterway.
As reported by the Financial Times, Kuwait, Saudi Arabia, and the United Arab Emirates are at the forefront of these talks, driven by the need to reduce a dependence that has suddenly become unsustainable after Iran demonstrated it could use the Strait as a powerful geopolitical lever.
A crisis that changed priorities
The near-total paralysis of the Strait of Hormuz represented a harsh awakening for all the region’s economies, which for decades have relied on its waters for much of their crude oil exports.
After Iranian actions and the American blockade on the Islamic Republic’s ports, the passage transformed from a simple trade route into a clear point of vulnerability. The nighttime attacks launched by Iran against targets in the Gulf, including Kuwait’s airport, made the risk concrete and immediate.
In this new scenario, projects that until recently seemed costly and non-urgent, such as building alternative pipelines, have become a strategic priority to ensure the continuity of oil sales and economic stability.
Kuwait leading regional dialogues
This new urgency was voiced by Sheikh Khaled Ahmad Al-Sabah, managing director for international marketing at Kuwait Petroleum Corporation, speaking at an event in London.
Kuwait, lacking its own alternative infrastructures, is conducting intense talks with Saudi Arabia and the United Arab Emirates to consider building pipelines connecting its fields to Saudi and Emirati ports on the eastern coast.
Sheikh Khaled frankly recalled how, until recently, many rhetorically questioned why build pipelines that risked remaining unused. Recent events have provided a very clear answer: in times of crisis, these infrastructures become indispensable to keep exports alive and protect the national economy.
The competitive advantage of Riyadh and Abu Dhabi
Compared to other Gulf partners, Saudi Arabia and the United Arab Emirates have an important advantage: they already own operational pipelines that allow transporting oil to ports outside the Strait without crossing other countries.
Both have maximized the use of these lines from day one of the crisis, confirming the foresight of past investments.
While Riyadh has not yet officially commented on the new negotiations, the Emirates are seriously considering building a new “west-east pipeline” for crude oil, as stated by Philippe Khoury, executive vice-president for trading at ADNOC.
This project would not only strengthen Emirati security but could become a shared regional infrastructure, with Abu Dhabi benefiting from substantial transit fees.
Logistical solutions under discussion
The proposals under review involve channeling oil from several countries to hubs located in Saudi Arabia and the Emirates, from where it would then be loaded onto ships bound for international markets via safer routes.
At the same time, Kuwait is exploring with Oman the possibility of building storage sites on the opposite shore of the Strait, creating a sort of logistical safety valve to be activated if necessary.
These are complex solutions requiring not only significant investments but also solid political agreements, long-term security guarantees, and shared management and tariff mechanisms.
Obstacles to overcome
It should be noted that similar projects have been discussed multiple times over the past decades without ever materializing.
The main obstacle has always been political: Gulf countries have often feared becoming overly dependent on neighboring infrastructures, exposing themselves to potential pressures or disruptions in case of bilateral tensions.
Today, however, the severity of the Iranian threat seems to have shifted the balance. What once appeared as an excessive risk is becoming a necessary step to safeguard the region’s economic future.
Between temporary emergency and long-term strategy
It remains to be seen how lasting this momentum will be. If the conflict truly resolves and navigation through the Strait returns fully safe and efficient, enthusiasm for billion-dollar investments could cool down. Yet the lesson of these months is profound: relying exclusively on a single, highly exposed route represents a systemic risk too great for countries that base their prosperity on oil revenues.
Gulf leaders therefore face a strategic choice: seriously invest in new infrastructures or, once normality is restored, revert to the greater economic convenience of the previous model centered on exports via Hormuz.
