Key facts
- Iran's actions in the Strait of Hormuz have demonstrated its ability to disrupt global shipping.
- Gulf states are developing alternative infrastructure, including pipelines and new ports, to reduce reliance on the strait.
- The U.S. and allies are prepared to ensure safe passage through the Strait of Hormuz.
- Iran has imposed a selective passage regime, allowing transit for countries that pay a toll.
Iran's recent threats to shipping through the Strait of Hormuz have effectively closed the waterway, sending shockwaves through the global economy. While negotiations have led to eased restrictions and increased traffic, the demonstrated ability of Iran to disrupt passage has spurred countries to accelerate plans for alternatives. Gulf states, including Abu Dhabi and Saudi Arabia, are investing in new pipelines, road and rail links, and port developments to reduce their reliance on the strait. Some are also establishing oil storage facilities outside the region. QatarEnergy and Abu Dhabi National Oil Company are pursuing overseas partnerships. The U.S. Navy, with support from 22 allied nations, is prepared to ensure safe passage, having already destroyed numerous Iranian naval vessels and attacked military targets. Iran has implemented a selective passage regime, allowing transit for countries that pay a toll while denying it to others, presenting a challenge to international interests.