Gulf oil producers seek alternative export routes amid Hormuz Strait tensions

Gulf oil-producing nations are accelerating plans to develop alternative export routes to bypass the Strait of Hormuz, which has become a focal point of maritime instability due to the ongoing conflict. According to the International Energy Agency (IEA), the strait served as an exit for 14.95 million barrels of crude oil per day in 2025. While Iran, which exports approximately 1.69 million barrels daily, is expected to continue utilizing the passage due to its strategic control over the area, other producers are looking to divert the remaining 13.26 million barrels.

Andrew Wilson, director of the shipping research firm BRS, stated that Iran is likely to continue prioritizing exports to China through the strait despite current regional tensions. For the remaining volume, industry experts and official announcements indicate that up to 11.5 million barrels per day could potentially be rerouted, provided that existing pipeline capacities are expanded and new projects currently under development are finalized.

However, the initiative faces significant hurdles, including technical, financial, and political challenges. Many of these infrastructure projects are not expected to be completed before 2030. The urgency for these alternatives was compounded by the regional conflict that escalated following the onset of airstrikes on February 28.