Iran’s Strait of Hormuz leverage is fading as global oil keeps flowing - opinion

The Strait of Hormuz, once a critical choke point carrying approximately 20 million barrels of oil per day, has lost its leverage in the global oil market as alternative routes have been developed. The United States, Saudi Arabia, and other Gulf states now collectively move around 15-16 million barrels per day, with 10 million barrels crossing the strait and another 5-6 million barrels transported via air and pipelines.

These alternative routes, including the Saudi East-West Pipeline, UAE Habshan-Fujairah line, and potential future expansions, have largely offset the loss of prewar volumes. Consequently, oil prices have stabilized around $85-$90 a barrel, far below the $150-plus levels that triggered panic previously. While the war is far from over and Iran continues to pose a threat to Gulf oil infrastructure, the strategic power of the Strait of Hormuz has diminished significantly.

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