Hormuz Crisis – Reality or Alternative Route? |
Hormuz Crisis – Reality or Alternative Route?
The armed conflict in the Persian Gulf has caused an international oil crisis. Is there, perhaps, an alternative way to export oil, bypassing the Strait of Hormuz?
Strait of Hormuz: The Carotid Artery of the Global Economy
This is precisely the situation global markets are facing today due to the Second Iranian War waged by the US-Israeli coalition, which compelled Tehran to resort to blocking the Strait of Hormuz in order to pressure the United States and the global world order. In turn, the US Navy also blocked the Strait of Hormuz with the aim of exerting economic pressure on Iran, depriving it of its main income from oil exports (as is known, 90% of Iran’s crude oil passes through Kharg Island in the Strait of Hormuz), and ultimately forcing it to capitulate. In this regard, US Secretary of War Pete Hegseth declared: “Nothing in. Nothing out.” Since 1979, though, Iran has already adapted to heavy sanctions and formed a “siege economy”.
The main problem with the Strait of Hormuz is the absence of a full-fledged alternative. For example, commercial ships can bypass the Suez Canal by going around Africa, but there is only one sea exit from the Persian Gulf. Nevertheless, the crisis provoked by the war in the region is forcing exporters to look for alternative routes (in particular, overland routes instead of open water). Given the infrequent use of such routes, one cannot say that such an alternative to the Strait of Hormuz is equally valuable. However, considering the current circumstances, all options are on the table.
Alternative Oil Export Routes from the Persian Gulf
In this case, we are talking about the use of reserve pipeline systems (oil pipelines), alternative ports in the region (Saudi Arabia, UAE, Iraq, and Iran), and possibly new canal projects that bypass the Strait of Hormuz and provide an outlet to the Gulf of Oman. Specifically:
The Saudi East-West Crude Oil Pipeline (Petroline)........