GULF REGION — The European Union announced plans to develop alternative trade and energy routes bypassing the Strait of Hormuz during a G7 meeting on June 17, 2026. The plans follow an increase in global fuel prices during the Iran war.

European Commission President Ursula von der Leyen discussed the India-Middle-East-Europe Economic Corridor (IMEC) with G7 leaders in Evian-les-Bains, France. Von der Leyen stated, "Alternative export routes have been created that are more resilient and offer choices. Other routes will be built — for example, a typical one is IMEC." The EU supported the IMEC through a memorandum of understanding, though only a portion of the EU's 27 member states are formal signatories. The corridor could involve new pipelines and transmission cables and has received support from Israel.

A high-ranking EU diplomat stated, "The focus now is on translating that vision into practical implementation across its three pillars: transport and trade connectivity, energy connectivity and digital connectivity." The EU press office declined to provide a timeline for the corridor project. The EU spent 25 billion euros more to import oil and gas in the first 54 days of the Iran war.

Lianne Pollak-David, co-founder of the Coalition for Regional Security, stated that U.S. leadership would be necessary to advance the corridor by facilitating diplomatic normalization between Israel and Saudi Arabia. "Without normalization between Israel and Saudi Arabia, IMEC cannot be truly realized." Pollak-David said. Saudi Arabia stated it will only normalize relations with Israel with a clear pathway to Palestinian statehood. French Foreign Ministry spokesperson Pascal Confavreux said, "G7 leaders are discussing ways of financing and building infrastructure that will bypass the Strait of Hormuz."

An EU official stated the bloc would encourage European companies to invest in renewable energy projects in the Gulf to supply European energy demand. Aramco increased oil transport through the East-West Pipeline to a maximum capacity of 7 million barrels per day after the Iran war started. The East-West Pipeline runs across Saudi Arabia from its eastern oil fields to the Red Sea. U.S. Secretary of Energy Chris Wright stated the United States is helping to foster closer energy ties among Greece, Cyprus, and Israel. Wright visited Houston to inaugurate the Eastern Mediterranean Energy Center at Rice University, which aims to increase cooperation on natural gas development, liquefied natural gas infrastructure, and energy transportation networks in Europe.

The Great Seas Interconnector, a planned electricity cable, intends to connect the power grids of continental Europe, Cyprus, and Israel. Financing administrative procedures are delaying progress on the project. Gabriel Mitchell, an analyst with the German Marshall Fund, stated that EU involvement with collaborative energy projects in Gulf countries will take time. He added, "The most likely projects in the near term are oil and gas pipelines, which have the shortest construction timeline, and subsidizing repairs at Gulf facilities that Tehran targeted during the war."