Iranian Pressure on Strait of Hormuz Boosts Saudi Arabia's Leverage

Iran's efforts to disrupt shipping in the Strait of Hormuz could inadvertently strengthen Saudi Arabia's negotiating position, according to analysts at The Jerusalem Post. With its extensive oil infrastructure, including the East-West Pipeline that transports oil from eastern fields to Yanbu on the Red Sea, allowing part of its exports to bypass the strait.

The publication notes that Iran is capable of making passage through the Strait of Hormuz more perilous and contributing to a rise in global oil prices. However, its ability to benefit from higher oil prices is limited due to reduced exports as a result of the US blockade.

According to data cited by The Jerusalem Post, Iranian oil shipments fell from approximately 2 million barrels per day in March to 220,000-255,000 barrels per day in August. In contrast, Saudi Arabia's East-West Pipeline helped limit the decline in its oil deliveries, as assessed by a July IMF evaluation.

The increased value of Saudi cooperation for the United States is also highlighted due to rising tensions in the Gulf. This has sparked negotiations between Washington and Riyadh on a proposed 30-year agreement on civilian nuclear energy, which could be linked to the normalization of relations between Saudi Arabia and Israel.