A US and Saudi alliance enters the final stage of choosing a host country for a $5 billion refinery outside the Strait of Hormuz route

Arab News reported on Wednesday, 29 July 2026 (7 Mordad 1405), that a Saudi and US alliance has entered the final stage of selecting a host country for a $5 billion project comprising an integrated refinery and an energy export corridor. The stated aim of the project is to create a strategic energy export platform that bypasses the Strait of Hormuz route.

According to the report, the final location for the project will be announced before the end of 2026.

The significance of this for Iran lies in its nature rather than its financial size. The Strait of Hormuz is Iran's strategic lever in the world energy market, and any long term investment aimed at bypassing that passage reduces the weight of that lever in the years ahead. Projects of this kind are typically several years from commissioning and have no immediate effect on today's prices.