Gulf Eyes Oil Route Diversification as Hormuz Grip Tightens

Even after a US–Iran ceasefire, Hormuz remains a chokepoint as Iran’s IRGC has disrupted shipping, leaving about 11.5 million barrels per day of Gulf output shut and roughly 170 million barrels stranded; roughly 300 million barrels have been removed from global balances, pushing prices toward the mid-90s region, with expectations of around $90/bbl. Gulf producers are pursuing bypass routes and expanded pipelines (Saudi East-West, UAE to Fujairah, Iraq–Turkey, Basra–Aqaba) to diversify exports and reduce Hormuz dependence, though colossal costs, security concerns, and political hurdles remain for a multi-route network.