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Gulf Nations Diversify Export Routes to Mitigate Impact of Iran War and Strait of Hormuz Disruptions

Gulf nations are increasingly diversifying their security partnerships and export routes to navigate the ongoing war with Iran. As the Strait of Hormuz remains a primary chokepoint, the administration seeks to impose an economic stranglehold on Iran through a naval blockade and sanctions. While the administration announced that the U.S. military is helping millions of barrels of oil transit the strait, maritime tracking data shows that commercial traffic has significantly reduced to a trickle. To counter these disruptions, countries like the United Arab Emirates and Saudi Arabia are expanding infrastructure outside the strait. The United Arab Emirates is accelerating construction on a 320-mile pipeline and new deepwater terminals in Fujairah to reduce dependence on the narrow waterway. Saudi Arabia has redirected oil flows to the Red Sea port of Yanbu. Meanwhile, China has demonstrated resilience by modulating demand and switching to coal-burning electricity plants. Global energy markets are shifting as importers seek alternatives to Middle Eastern crude. Japan and Europe are securing supplies from the United States, Canada, and Brazil, while US energy companies are reporting record-high profits.

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