Donald Trump’s energy adviser is calling for new oil export routes across the Gulf to reduce reliance on the Strait of Hormuz after months of disruption to energy supplies during the Iran war.
The push comes as Washington and Tehran resume negotiations over ending the conflict, with Iran proposing a ceasefire of up to 60 days and the phased reopening of the strait.
Jarrod Agen, head of America’s Energy Dominance Council, says Gulf states should develop alternative corridors capable of carrying energy exports without passing through Hormuz.
Agen said: “We need to de-emphasise the strait [Hormuz].”
He said: “When Europe had to get off Russian gas, we looked at different corridors to get US LNG into Europe to replace the Russian gas. We want to do a similar system in the Gulf.”
Agen said that means “several routes, different corridors, either east-west, either bypassing the strait or getting up Turkey or into the Mediterranean”.
Saudi Arabia and the UAE are expected to be key partners in the plans.
Agen said: “How do we make alternative routes beyond the bypass route so that no one route can be attacked and shut down the progress?”
He said: “I mean, yes, the infrastructure commitment is going to be in the billions. But look at the long-term benefits of it.”
Agen continued: “It’s almost incalculable, because energy security is national security.”
The proposals follow months of disruption to the Strait of Hormuz, which carried more than 20 per cent of the world’s oil trade before the war.
Traffic through the waterway has fallen by about 95 per cent since the conflict began in February, from more than 100 vessels a day to as few as five.
The United States is separately discussing a $10 billion joint investment initiative with Arab states to repair infrastructure damaged during the war and develop pipelines and other routes capable of bypassing Hormuz.
Saudi Arabia already operates its East-West pipeline, which carries crude from the kingdom’s oil-producing east to the Red Sea coast without passing through the strait.
The pipeline restarted this week after being damaged in a drone attack earlier this month.
The US effort comes as control of Hormuz remains central to negotiations between Washington and Tehran.
Iran is proposing a regionwide ceasefire lasting up to 60 days, the phased reopening of Hormuz and an end to the US blockade of Iran.
The proposal also calls for Iran to halt attacks on Arab countries and sets out a timetable for negotiations aimed at reaching a broader settlement during the ceasefire.
One source described the proposal as “a sort of detailed agenda for future, substantive negotiations to end the conflict and reach a comprehensive resolution to differences with Washington”.
The source added: “It also repackages or summarises the outcome of previous rounds of negotiations, with ‘pressing’ issues singled out for immediate action.”
US and Iranian officials have since held around three hours of talks on the sidelines of the UN General Assembly in New York.
Iranian Foreign Minister Abbas Araghchi and Trump’s envoy Steve Witkoff took part in the Qatar-mediated discussions, with mediators moving between the two sides.
Witkoff said: “They successfully completed a round of discussions that we hope will prove constructive and promising.”
Iran continues to demand an end to US military action, while Washington has resisted lifting its blockade before Tehran takes steps that the US considers sufficient to demonstrate goodwill.
Iran has separately said it could reopen Hormuz within seven days if the United States eases military pressure and lifts its blockade of Iranian ports.
Trump says negotiations are continuing.
He said: “I think that a settlement is going to be reached.”
Differences however remain over the sequence of any agreement, including when Washington would ease its blockade and when Tehran would reopen Hormuz.