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Saudi Arabia·Iran·Middle East·Trade & Economy·Energy·Diplomacy·Armed Conflicts

Gulf states accelerate infrastructure and arms deals to reduce dependence on Iran and Strait of Hormuz

Wednesday, 15 April 2026, 22:13 · 1 min read

Gulf Arab states are rushing to 'Iran-proof' their economies following weeks of closure of the Strait of Hormuz (the narrow waterway through which the bulk of Persian Gulf oil and gas reaches world markets), launching an estimated $290 billion wave of pipelines, rail corridors, and port expansions designed to permanently reroute 30–80% of their exports away from the chokepoint. The crisis, which has caused an estimated $25 billion in damage to Gulf energy infrastructure and is forecast to shrink Qatar's GDP by 13% and Saudi Arabia's by 6.6% this year, has also triggered a quiet arms race, with the UAE, Saudi Arabia, and Qatar signing drone and missile-defence agreements with Ukraine, South Korea, Japan, and Turkey. Gulf officials say the goal is not simply to build backup routes but to forge a new regional economic model that no longer depends on stable relations with Tehran, though they add that Iran would be welcome to join the emerging network should it choose cooperation over confrontation.

Sources
Christian Science MonitorHormuz workarounds and arms deals: Gulf states seek to ‘Iran-proof’ their future ↗︎
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