Traders are preparing for a spike in borrowing from Persian Gulf nations as the region’s oil exporters seek financing to build costly bypasses around the Strait of Hormuz. The move aims to lessen reliance on the narrow chokepoint that carries a significant share of global oil supplies.

Countries such as Saudi Arabia, UAE, Qatar, Kuwait and Oman are evaluating bond issuances and loan facilities to fund new pipelines, ports and overland transport routes. Market sources indicate that the combined borrowing could reach $10 billion or more across the Gulf.

The infrastructure projects are intended to provide alternative export channels, thereby enhancing energy security amid ongoing geopolitical tensions. Financial institutions are already positioning to underwrite the anticipated debt surge, readying syndicated loans and bond underwriting desks.

Market analysts will monitor the timing and scale of these issuances, as they could affect regional bond yields and influence broader oil market dynamics by altering export route risks.