Gulf states seek to bypass Strait of Hormuz for oil exports via pipelines

Gulf states are developing pipeline infrastructure to export oil outside the Strait of Hormuz, a critical chokepoint where roughly one-third of global seaborne crude passes through daily. The move follows Iranian drone attacks on the UAE port of Fujairah in the Gulf of Oman, escalating regional tensions and prompting Gulf producers to reduce their vulnerability to potential supply disruptions. By rerouting crude through alternative pipelines, Gulf exporters aim to bypass Iranian threats and reduce reliance on a waterway where geopolitical disputes could cripple global energy markets. The strategy carries broader economic implications: elevated oil prices driven by supply-chain anxieties threaten to simultaneously stoke inflation and dampen global growth, leaving central banks navigating a difficult policy dilemma. The infrastructure shift reflects a longer-term regional hedge against future conflicts and a bid to secure energy exports independent of Middle Eastern chokepoints.