10 million barrels a day of Gulf oil production has been lost due to the Strait of Hormuz closure, sending prices soaring and forcing massive production cuts across Iraq, Kuwait, UAE, and Saudi Arabia.

Geography, political rivalries, and economic competition have left the Gulf region without viable alternatives to the vulnerable Strait of Hormuz, which remains the only export route for most regional oil and gas. Saudi Arabia and the UAE built pipelines circumventing the strait, but they can carry only a fraction of the region's output. Qatar, a major gas exporter, cannot use its only land border with Saudi Arabia due to a diplomatic rift.

The war triggered by the US-Iran conflict has drastically reduced shipments through the strait to less than 10% of prewar levels. While the UAE's pipeline to Fujairah and Saudi Arabia's East-West pipeline provide some relief, they are insufficient. Iran's attacks on shipping and infrastructure, along with Houthi disruptions in the Red Sea, compound the crisis, leaving tankers stranded and storage tanks full.

Without a swift resolution to the conflict or significant pipeline expansion, the Gulf's energy exports face an uncertain future, threatening global oil markets and exposing the region's lack of preparedness for such a chokepoint scenario.