Hormuz Crisis Highlights Need for Diversified Energy Routes

The Strait of Hormuz crisis highlights the importance of diversified energy routes, according to a report by the Middle East Forum. The closure of this critical waterway has disrupted trade and energy flows, triggering economic disruptions across regional and global markets.

In 2026, US-Iran conflict disrupted trade through the Strait of Hormuz, underscoring the risks of dependence on a single transit route. In contrast, other important sea lanes like the Strait of Malacca have alternative routes, such as the Sunda and Lombok straits, allowing international trade to continue.

The report notes that Saudi Arabia built an East-West oil and gas pipeline network in the 1980s, transporting energy resources from the Abqaiq oil processing facility in eastern Saudi Arabia to the Red Sea port of Yanbu. However, Houthi drone attacks have hindered efforts to expand this alternative route.

The Middle East Forum report suggests that developing a 21st-century version of the Stilwell Road - a network connecting the Persian Gulf with the Mediterranean and Arabian Sea - could generate significant economic benefits for both the US and global economy. This network would allow countries to diversify their energy routes, reducing reliance on vulnerable waterways.