Inside the U.S.–Israel–Saudi Plan to Cut Iran Out of Global Oil
Whatever officially occurs next in the on-again/off-again negotiations towards a peace deal between the U.S. and Iran, unofficially Tehran knows that it has established de facto control over both the world’s two key maritime energy transit routes -- the Strait of Hormuz and the Bab el-Mandeb Strait -- for at least as long as the Islamic regime remains in place in Iran. Washington, London,…
The U.S., Israel, and Saudi Arabia are discussing a new plan to remove Iran from the global oil market. Tehran currently controls the Strait of Hormuz and the Bab el-Mandeb Strait, preventing oil and LNG from leaving the Middle East and reaching Asian buyers like China and India. The U.S.-Israeli military operation "Epic Fury" launched on February 28 aimed to close these routes. Iran has since formalized its response to any threats, closing the Strait of Hormuz and interfering in the Bab el-Mandeb Strait.
A commercially driven project by MERA Oil, a joint venture between MWG Enterprises, the Patel Family Office, and PWS, a Saudi-headquartered group, could help mitigate this situation. This project, announced recently, aims to build a US$5 billion integrated refinery and energy export corridor outside the Strait of Hormuz. The site will be linked to deepwater port infrastructure, large-scale storage facilities, and marine export facilities.
Once announced, the project will move into final site diligence and engineering design, with Phase One completion expected by the end of 2029.
The strategic rationale behind locating this infrastructure outside the Strait of Hormuz is similar to the India-Middle East-Europe Economic Corridor (IMEC), a larger initiative supported by Washington. IMEC aims to divert around 60% of container traffic currently risking the Strait of Hormuz by creating land-based alternatives through Oman and other countries. This would provide Washington with greater control over oil and LNG flows, avoiding China's influence through Iran.
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