Middle East Energy Routes Under Fire Amid US-Iran Conflict

The ongoing US-Iran conflict has highlighted the importance of Middle East energy transport routes. Disruptions to key maritime chokepoints, such as the Strait of Hormuz and Bab Al Mandeb strait, threaten global supplies of oil, liquefied natural gas (LNG), and trade.

According to Sasha Foss, an energy analyst at CSC Commodities, a division of Marex, a simultaneous closure of both chokepoints would 'tighten physical oil markets critically'. The Strait of Hormuz, which carries over 20% of global crude supply, has been virtually shut since February.

The Bab Al Mandeb strait, which connects the Red Sea to the Gulf of Aden and Indian Ocean, has also seen disruptions due to attacks by Iran-backed Houthi rebels in Yemen. As a result, Saudi oil tankers have made U-turns amid ongoing hostilities in the Red Sea.

Countries are increasingly relying on overland pipelines to bypass vulnerable sea lanes. The East-West pipeline and Habshan-Fujairah pipeline have emerged as key alternative export routes for countries like Saudi Arabia and the UAE.