Iran's oil supply threat extends beyond Strait of Hormuz
Oil and gas producers in the Gulf are seeking alternatives to the Strait of Hormuz as traffic again comes under fire. But is Iran also turning its attention to the pipelines meant to bypass the waterway?
The ongoing conflict between the US and Iran has significantly disrupted oil and gas exports from the Gulf region, particularly through the strategically critical Strait of Hormuz. Despite several months of US bombing campaigns, Iran has maintained control over the strait, leaving the US grappling with how to regain the upper hand.
Recently, Iran has attacked tankers and military facilities in Bahrain, Kuwait, and Jordan, prompting a US naval blockade and renewed strikes on Iranian targets. The Strait of Hormuz, once a toll-free waterway, now handles around 20% of global liquefied natural gas (LNG) and 20% of the world's oil transported from the Persian Gulf to Asia.
However, shipping through the strait has sharply declined due to the conflict. Analysts warn that further attacks could lead to retaliation against Gulf oil and gas infrastructure, causing oil shortages and costly repercussions for the entire region. While some Gulf countries have export routes that bypass the strait, these alternatives are limited and could be vulnerable to future attacks.
The conflict has also reignited discussions about expanding new pipeline infrastructure, but such projects would take years and billions of dollars. Iran has made it clear that regional energy producers must either collectively export or none at all, threatening to block important waterways or target other Gulf oil and gas infrastructure if attacked.
Written by urgent.news from DW Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
