The Gulf Cooperation Council (GCC) member states are grappling with the varied economic impacts of the ongoing crisis stemming from the US-Israel war on Iran, which has significantly disrupted trade through the Strait of Hormuz. While Oman has experienced minimal disruption, Saudi Arabia and the United Arab Emirates have partially rerouted oil exports. However, Kuwait, Bahrain, and Qatar face severe economic contraction due to being effectively cut off from global markets.

This situation underscores a critical need for the GCC to develop collective strategies and mechanisms to mitigate the consequences of any future threats to the Strait of Hormuz, a vital global energy chokepoint. Experts emphasize that such solidarity is not merely an act of neighborly goodwill but a strategic imperative for the survival of the GCC's unity and its influence on the international stage.

The prolonged closure of the Strait, even if temporarily resolved, poses a significant risk to GCC states of losing long-term clients. This is due to concerns about their reliability in fulfilling export obligations and perceptions of them as risky suppliers. Without a unified approach, individual states may resort to self-interested strategies, potentially leading to a detrimental "zero-sum game" that weakens the bloc's overall economic and political leverage.

While rhetorical demonstrations of solidarity have occurred, such as during an April 28 GCC consultative meeting in Jeddah, practical, expert-level discussions have yet to translate into concrete actions. The perceived unilateral response by some nations, like the UAE's exit from OPEC, suggests a trend of prioritizing individual market share over collective crisis management, which could have grave economic consequences for the entire region.

To address these vulnerabilities, experts propose the implementation of swap arrangements as a key instrument of solidarity. These mechanisms can help ensure the fulfillment of contractual obligations even when direct export routes are compromised. The GCC could explore three types of swaps: physical, contractual, and quality swaps.

Physical swap deals involve one party delivering an equivalent commodity to fulfill a contract on behalf of another, effectively bypassing transit restrictions. Contractual swaps operate similarly, ensuring that commitments are met through alternative arrangements.

Quality swap deals could allow nations to exchange crude oil of different grades. This would enable countries with limited refining capacities or specific crude types to meet their export contracts by swapping with neighbors who can better utilize or process their available oil, thereby maintaining market presence and stability.

Implementing such swap arrangements would require significant coordination and trust among GCC members. It represents a concrete step towards building a more resilient economic framework, capable of withstanding future geopolitical shocks and preserving the integrity of the GCC as a cohesive economic and political entity.