The GCC should insure itself against the next Strait of Hormuz crisis
The piece urges GCC states to build swap systems and a clearing facility to cushion future Strait of Hormuz disruptions.
Intelligence analysis by GPT-5.4 Mini
Al Jazeera argues the Gulf states need practical burden-sharing, not just rhetoric, after the Iran war shakes energy flows. It says swap arrangements and a regional clearing mechanism could help member states keep exports moving during future closures.
The article says Gulf countries need a backup plan for oil shipments.
If one road is blocked, traffic can sometimes use another road. Here, the road is a sea route, and the cargo is oil and gas.
The writers want the countries to help each other instead of scrambling alone. That way, one crisis does not hurt everyone so badly.
Analysis
Why the GCC needs a joint response
The article says the US-Israel war on Iran has hit GCC members unevenly. Oman has continued operating with little disruption, Saudi Arabia and the UAE have rerouted some exports, and Kuwait, Bahrain and Qatar have been left more exposed to possible economic contraction. That imbalance is the reason the authors argue for collective action rather than a series of national workarounds.
The risk of acting alone
Even if the war cools down, the article says the GCC will remain under the shadow of a nearly three-month closure. The danger is not only temporary supply disruption, but also the loss of customers who may view Gulf suppliers as unreliable. The authors warn that if states keep pursuing their own interests, the region could slide into a zero-sum competition that weakens GCC unity and its ability to influence energy markets.
The swap idea
The main policy proposal is a system of physical, contractual and quality swaps. In practical terms, this would allow buyers to receive substitute cargo from places like Yanbu, Fujairah, Duqm or even farther afield, while the original obligations are settled later through cash, future delivery or product exchange. The authors say such swaps work best when prearranged, but they can also be assembled during a crisis if trading relationships and infrastructure already exist.
A clearing facility
The article points to past examples involving Qatar, ENOC and Oman LNG to show that Gulf energy companies already know how to do this. It proposes an energy swap facility run through a coordinated clearing mechanism involving national oil companies, refiners, traders, insurers, banks and major buyers. The goal would be to match blocked cargoes with replacement deliveries and reconcile value later. The article also acknowledges that infrastructure limits mean this cannot fully replace all Hormuz volumes immediately, but argues the GCC should start building the system now.
Key points
- The article says the Strait of Hormuz crisis has affected GCC states unevenly.
- It argues unilateral responses could weaken GCC unity and energy influence.
- Swap deals could let buyers receive substitute cargo while accounts are settled later.
- The authors cite Qatar, ENOC and Oman LNG as proof the region already has relevant experience.
- They propose a regional energy swap facility with oil firms, banks, traders and buyers.
