Iran War Drives Oil Industry to Seek New Export Routes

The ongoing conflict in Iran is reshaping the global oil industry's approach to supply chains, pushing companies to explore alternative export routes that avoid the Gulf and Red Sea. Attacks near critical straits like Hormuz and Bab el-Mandeb have disrupted energy exports, leading to higher prices and inflation worldwide. TotalEnergies CEO Patrick Pouyanne emphasized the need for the industry to shift from a just-in-time to a just-in-case mindset, highlighting plans to invest in pipelines bypassing Hormuz, including an Iraq-to-Syria pipeline and expanding capacity to the UAE port of Fujairah.

BP's CEO Meg O'Neill noted the potential for new northern export routes from Iraq, though she expressed uncertainty about BP's direct involvement due to debt reduction efforts. Chevron CEO Mike Wirth discussed negotiations with Iraq for new pipelines to Mediterranean ports, but cautioned that such projects would likely require multi-party funding rather than Chevron's sole investment. Kuwait Petroleum Corporation's chief executive stressed the shared responsibility between producers and importers in developing new infrastructure.