Gulf producers seek foreign investment in Hormuz bypass routes

· Oil & Gas · Saudi Arabia

Top executives at major Gulf oil producers called for external investment in new routes that bypass the Strait of Hormuz and in crude and fuel storage capacity outside the region, closer to consumers. Saudi Arabia's East-West pipeline had moved 5.8 million barrels of crude as of Tuesday morning, Energy Minister Prince Abdulaziz bin Salman said, adding volumes to the kingdom's Red Sea export route via Yanbu as Gulf producers keep working around the strait. Brent held near $100 as recovering Gulf flows collided with record freight costs and rising tanker risks. The push reflects concern that existing workarounds will not be enough, and that buyers may have to share the cost of keeping oil moving.

Why it matters：With the Strait of Hormuz disrupted, the oil industry's export logistics and cost-sharing between Gulf producers and Asian importers are being renegotiated, a shift that could reshape global crude flows and freight economics.

Key points

  • Saudi East-West pipeline had moved 5.8 million barrels of crude as of Tuesday morning, feeding the Red Sea route to Yanbu
  • Gulf executives want storage and new routes built outside the region, closer to consumers
  • Brent held near $100 amid record freight costs and mounting tanker risks

Sources (original reporting)

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