Hormuz Crisis Tests Global Energy-Security System

The global energy-security system is facing a new challenge as the US-Iran conflict disrupts oil flows and transportation routes. This crisis has prompted questions about whether a new energy security regime, built around resilient supply chains, alternative transport routes, and geopolitical cooperation, will emerge.

The 1973 oil embargo led to a sweeping overhaul of the global energy-security framework, including the establishment of strategic petroleum reserves (SPRs) and the creation of the International Energy Agency (IEA). However, these mechanisms may not be sufficient for today's challenges, which are driven by constraints on transportation and logistics rather than production capacity.

The current disruption has exposed the vulnerability of one of the world's most important energy chokepoints, the Strait of Hormuz. The situation has become even more complex with threats to Saudi Arabia's East-West Pipeline, a critical alternative route for bypassing Hormuz.