Kuwait is in discussions with Saudi Arabia and neighbouring Arab nations to construct a major crude oil export pipeline that would bypass the Strait of Hormuz, the country’s oil minister announced, as the ongoing crisis in the Middle East keeps the critical waterway blocked.

Kuwaiti Oil Minister Tariq Sulaiman Al-Roumi told Japan's Kyodo news agency that the proposed pipeline project aims to secure alternative export routes.

Options under consideration include connecting Kuwait through Saudi Arabia to ports on the Red Sea or Oman, as well as linking directly to the United Arab Emirates’ port of Fujairah.

Al-Roumi described the multi-nation effort as a "huge" project being developed in consultation with Saudi Arabia, the UAE, and other regional partners.

"We are currently looking for the best and most cost-effective option," Al-Roumi said.

The strategic pipeline project comes as Kuwait’s maritime crude exports have ground to a complete halt due to Iran's effective closure of the Strait of Hormuz.

Situated deep within the Persian Gulf, Kuwait relies heavily on the narrow waterway to reach international markets.

"As long as the strait remains blocked, oil exports are zero," Al-Roumi stated.

The conflict, which escalated in late February following military action by the United States and Israel against Iran, has severely disrupted energy markets.

Japan, historically one of Kuwait's top crude customers, has seen its shipments cut off.

In response to the supply shock, Al-Roumi noted that talks are also underway to bolster strategic oil reserves in partner nations.

In addition to export logistics, Kuwait is grappling with physical infrastructure damage. Rebuilding oil storage tanks damaged in recent attacks will take "at least a year," according to the minister.

Al-Roumi condemned Iranian missile and drone strikes targeting Kuwait and neighbouring Gulf states, emphasizing that Kuwait had launched no offensive operations against Iran.

He assured that vital energy infrastructure remains protected by air defenses, with plans already underway to further reinforce the nation's air defense capabilities moving forward.

The latest development comes just a week after the country’s energy giant  Kuwait Petroleum Corp. (KPC) signed a landmark $16 billion lease-and-lease-back agreement  for its domestic and export pipeline, attracting massive direct foreign investments in the country’s energy infrastructure.