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The administration announced new economic sanctions to loosen Iran's hold on the Strait of Hormuz as Gulf nations build bypass pipelines.

The administration announced new economic sanctions to reduce Iran's influence over the Strait of Hormuz, a critical maritime chokepoint for global energy. While the Strait remains a vital corridor for oil and liquefied natural gas, the ongoing conflict between the United States and Iran has forced Gulf nations to invest in alternative infrastructure. Saudi Arabia and the United Arab Emirates are developing pipelines to reroute exports, such as the UAE's $3 billion expansion to the port of Fujairah. However, energy analysts warn that these projects will take several years to complete and may not fully replace the shipping capacity of the Strait. For example, the International Energy Agency notes that even when finished, these pipelines may only handle about half of the pre-war export levels. Iraq is also negotiating with Turkey and Syria to repair or expand existing pipelines. Despite these efforts, experts suggest that the Strait of Hormuz will remain essential for the near future, as many energy products, particularly liquefied natural gas, cannot be transported through pipelines. Consumers are expected to maintain higher prices for fuel and food due to the continued supply disruptions.

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