The UAE has pledged to avoid having its energy exports “held hostage” by the Iran conflict, expanding alternative trade routes and infrastructure to ensure stability amid escalating tensions in the Strait of Hormuz, officials said on September 7, 2026.
UAE Presidential Adviser Dr. Anwar Gargash asserted at the Hili Forum in Abu Dhabi that the country is constructing alternative energy and trade corridors to prevent its exports from being disrupted by the U.S.-Iran conflict, which has targeted the Strait of Hormuz. Our energy exports will not be held hostage, nor will our trade and economic activity,
Gargash stated, emphasizing the need for self-sufficiency in security and navigation rights.
The Strait of Hormuz, through which a fifth of global oil supply passes, has become a flashpoint after Iran threatened to close it following U.S. and Israeli strikes on February 28, 2026. Gargash criticized Gulf Arab states for failing to coordinate a unified response, calling for self-sufficiency when it comes to security. The UAE has since expanded eastern port capacity, extended pipeline networks, and developed rail infrastructure to bypass the strait, with the Habshan-Fujairah pipeline already operational to reroute oil to Fujairah’s port on the Gulf of Oman.
The conflict has triggered a global economic crisis, with energy prices spiking and the strait’s status remaining a sticking point in negotiations mediated by Qatar and Pakistan. Gargash reiterated that freedom of navigation is not a concession to be granted, demanding credible guarantees against further Iranian attacks on Gulf states. The UAE suspended financial transactions with Iran in August 2026, formalizing an economic rupture that began with the February strikes.
UAE says its energy exports will not be 'held
The UAE’s efforts to diversify its energy infrastructure include expanding port capacity along its eastern coast, developing pipelines, railways, and trade routes. The Habshan-Fujairah pipeline, described as the clearest example of this strategy, connects inland oil fields to Fujairah’s port, bypassing the Strait entirely. By early June 2026, the UAE had used facilities like this to recover oil exports to roughly 85% of pre-war levels, a notable rebound given the scale of disruption that followed February’s strikes.
Gargash was direct about what freedom of navigation means to Abu Dhabi. At the forum, he stated, Freedom of navigation is not a concession to be granted,
framing it not as a diplomatic courtesy Iran can dangle in negotiations but as a baseline condition for any future regional order. Qatar’s foreign ministry spokesperson, Majed al-Ansari, echoed similar concerns, saying, We need to realise in the Gulf that having international forces in the region, having a strategic alliance with the U.S. is very important but is not enough.
The UAE’s message to oil markets is clear: regional war or not, the crude keeps moving,
Gargash said at the Hili Forum. This resilience stems from infrastructure projects like the Habshan-Fujairah pipeline, which connects inland oil fields to Fujairah’s port, reducing reliance on the strait.
The conflict, sparked by U.S. and Israeli strikes on Iran on February 28, remains deadlocked. A preliminary ceasefire reached in June has unraveled, and little progress has been made in efforts to revive the peace process. Gargash acknowledged that the UAE sees value in a functional relationship with Tehran but emphasized that rebuilding trust could take decades. The UAE suspended all financial transactions with Iran in August 2026, a step that formalized the economic rupture the conflict had already created.
UAE vows energy exports won't be held hostage by
Before the war, UAE banks and trading firms served as a significant conduit for Iranian commerce, including trade flows that Western sanctions had pushed into gray-market channels. The February 28 strikes by the US and Israel triggered the sequence of events that forced Abu Dhabi’s hand. Iran responded with missile attacks on UAE territory, a significant escalation that put the Gulf’s wealthiest and most economically open state directly in the crossfire.
The UAE’s infrastructure investments position it as a stabilizing force in the Gulf, even as other producers face acute exposure. Gargash’s speech served as a message to markets, that the UAE intends to remain a reliable energy supplier; to Iran, that Abu Dhabi is building leverage it did not have before; and to regional partners, that the UAE sees freedom of navigation as a non-negotiable foundation for any post-conflict order in the Gulf.
The conflict has had a significant impact on Gulf Arab states, including the UAE, after Tehran fired missiles at the country and attacked its oil tankers in the Strait of Hormuz. The UAE’s strategy underscores a shift toward diversification, with Gargash stating, We need to realise in the Gulf that… self-sufficiency is the only way forward. As the situation evolves, the focus will remain on how alternative routes and regional alliances shape the Gulf’s energy landscape, with the Strait of Hormuz’s future hanging in the balance.
