Al Jazeera opinion urges GCC to establish collective energy swap facility

An opinion piece published by Al Jazeera on 24 May 2026 has urged Gulf Cooperation Council (GCC) member states to establish collective insurance mechanisms, specifically energy swap arrangements, to mitigate the economic impact of future closures of the Strait of Hormuz. The article argues that the ongoing US-Israel military operations against Iran, which began in February 2026, have created a de facto closure of the Strait, disproportionately affecting Kuwait, Bahrain, and Qatar, while Saudi Arabia and the UAE have utilised alternative export routes.

The author proposes a coordinated clearing system among national oil companies, refiners, traders, and international buyers to facilitate substitute deliveries, citing historical precedents in Qatar, the UAE, and Oman. The piece warns that unilateral actions, such as the UAE’s recent exit from OPEC, threaten regional unity and urges Saudi Arabia to lead a joint effort to stabilise the market and reduce dependence on the strategic waterway.

The article highlights that the ongoing conflict involving Iran has disproportionately affected Kuwait, Bahrain, and Qatar, while Saudi Arabia and the UAE have utilised alternative export routes. It proposes a coordinated clearing system among national oil companies and buyers to allow substitute deliveries, citing historical precedents in Qatar, the UAE, and Oman. The piece warns that unilateral actions, such as the UAE’s exit from OPEC, threaten regional unity and urges Saudi Arabia to lead a joint effort to stabilise the market and reduce dependence on the strategic waterway.

The piece details specific swap mechanisms (physical, contractual, and quality) and suggests a new energy swap facility involving a coordinated clearing mechanism. It notes that a memorandum of understanding between the US and Iran has been largely negotiated, potentially signalling a resolution to the conflict.

The article is dated 24 May 2026, placing the reported crisis and the proposed solutions in a future context relative to the current date. It claims the UAE has exited OPEC, a move described as driven by the perception that the Strait of Hormuz crisis was an opportunity to gain greater oil market share. It asserts that a US-Israel war on Iran has been ongoing since February 2026, resulting in a nearly three-month closure of the Strait of Hormuz.

It highlights that Egypt has deployed military jets to the UAE, indicating deepening security cooperation amid the conflict.