The Dilemma at Hormuz and the GCC: Repercussions and Solutions

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he Strait of Hormuz has long been the lifeline for the energy production of the GCC states, enabling these oil-rich nations to export huge quantities of oil to consumers, particularly those in East Asian countries such as China, Japan, and South Korea. This allowed the GCC states to prosper, build their economies, foster population growth, and cultivate international relations, using energy as a tool of influence. However, the geopolitical shifts in the region, represented by the war between the United States and Iran in late February 2026, and the associated regional security dilemma, led to the closure of the Strait of Hormuz by Iran on March 4, 2026.

This has cast a shadow over the economies of the Gulf Cooperation Council (GCC) states, which rely heavily on energy exports, and has also affected consumer economies, the industrial production cycle, supply chains, and global trade in general. Approximately 20% of global trade passes through the Strait of Hormuz daily, including roughly 16 million barrels of crude oil, representing more than 15% of global oil demand, estimated at 104 million barrels per day, according to 2025 figures.

In addition, about 10 billion cubic feet of liquefied natural gas (LNG) passes through the Strait, mostly from Qatar, which accounts for nearly 20% of global LNG trade. Therefore, a complete halt to shipping traffic in the Strait of Hormuz has severely disrupted energy exports and crippled the economies of the GCC countries, recovery from which is likely to take a considerable time. The disruption of energy exports through the Strait led to a supply gap estimated at around 10 million barrels per day.

Alternative options to bypass Hormuz

Countries with alternative export routes, such as the UAE’s Habshan-Fujairah crude oil pipeline, and Saudi Arabia’s 1,200 km. pipeline from Abqaiq in the Eastern Province to Yanbu on the Red Sea, were unable to fill the gap due to the limited capacity of these alternative routes. The limitation of the alternative oil export pipeline was compounded for Saudi Arabia when the Houthis closed the Strait of Bab el-Mandeb in July 2026, effectively choking off Saudi oil exports. Saudi Arabia alone exports between six and seven million barrels of crude oil per day, and the crisis in the Strait of Hormuz reduced this production to less than half.

Overall, the pumping capacity of both alternative routes — the UAE’s Habshan-Fujairah pipeline and the Saudi pipeline from the Eastern Province to the port of Yanbu on the Red Sea — remained capped at only 3.5–5.5 million barrels per day. The war with Iran and its major repercussions, such as the closure of the Strait of Hormuz, posed a genuine threat, primarily to the GCC with their economies that are significantly reliant on revenues from the export of hydrocarbons. The dilemma also disclosed gaps in the GCC’s security arrangements and revealed a clear absence of long-term plans, to ensure the sustainability of energy exports without total dependence on passage through the Strait of Hormuz.

Despite the multiple official statements of condemnation and calls for the indispensability of allowing free navigation through the Strait, future considerations can be viewed through two main perspectives. First, the lack of cooperation on energy export strategies. The closure of the Strait of Hormuz severely impacted some GCC members, such as Qatar, Bahrain, and Kuwait, due to the lack of alternative shipping routes. Second, the absence of a collective approach to security, particularly maritime security, within the GCC. This was manifested in the lack of a unified stance on the conflict, and the absence of a manifest collective security framework.

Collective energy export strategy

With regard to energy export strategies and economic security, the GCC countries need a joint strategy, to ensure the continuity of oil and gas exports during times of regional crisis that cause disruption to maritime shipping, such as when transit through the Strait of Hormuz becomes impossible. First, this requires the building of trust, as transboundary pipelines will traverse the territories of neighboring countries, with coastal states serving as the final export hub. If these final export hubs are to be the Omani ports on the Arab Sea, while avoiding the use of ports on the Sea of ​​Oman due to their proximity to Iran, this will pose a challenge for countries like Kuwait, as export routes will be long, and will pass through several GCC states’ territories.

Furthermore, a single export hub implies greater vulnerability, as it will represent a center of gravity for energy resources, making it susceptible to targeting or sabotage. Second, Saudi Arabia and the UAE may consider expanding their alternative pipeline capacity to accommodate their daily oil production. However, for the UAE, the alternative export terminal at the port of Fujairah on the Sea of ​​Oman remains vulnerable, due to its proximity to Iran. Likewise, for Saudi Arabia, the alternative oil pipeline in Yanbu on the Red Sea remains dependent on the status of the other maritime corridor, the Bab Al-Mandeb Strait.

Third, it is possible to invest in LNG and storage facilities in areas that do not require passage through any of the straits. This move could be linked to increasing storage capacity to accommodate mass LNG production, which would ensure the safe flow of LNG away from conflict zones, as it passes through the straits. However, the GCC states must reach a consensus on managing unified export hubs, and again, a common export hub would remain vulnerable to attacks and sabotage. Reaching a consensus on future security arrangements and energy export strategies is crucial for the GCC states, as divergent and unilateral approaches to security and energy issues have proven strategically costly.

Collective regional security approach is a must

When viewing the issue of their inability to secure energy exports, the GCC states appear to be constrained by divergent energy transportation strategies, each of which entails numerous challenges and risks. Therefore, the GCC states may need a comprehensive review of their security cooperation, to ensure a unified stance on regional crises and support mediation efforts, so as to reach solutions satisfactory to all members and regional actors alike.

The February 2026 outbreak of war serves as a wake-up call for GCC decision-makers to enhance coordination on security issues, ensuring the continuity of energy exports and regional security. Particular attention must be paid to maritime security through a collective approach, which is currently lacking. By ensuring a unified maritime security policy, the GCC states can strengthen their naval capabilities, guarantee the interoperability of systems, improve coastal patrols, and reduce defense spending through the concept of burden-sharing.

However, collective maritime security will only bear fruit by fostering a degree of coexistence with other actors, thus bringing relative calm to the region. This would allow the GCC states to address security issues in partnership with other regional actors, such as Iran, Iraq, and potentially Yemen, without foreign interference, and through joint investments, incentives, and shared interests, to build trust and counter geopolitical volatility.