Middle East War Redraws Global Oil Trade Routes

The ongoing war in the Middle East is reshaping global oil trade routes as exporters rush to diversify their channels and importers seek alternative suppliers.

The Strait of Hormuz, a critical chokepoint for crude oil exports, has seen daily flows drop from nearly 20 million barrels pre-war to between 6-8 million barrels due to the conflict.

Saudi Arabia has taken advantage of an alternative route through the Bab el-Mandeb Strait and reversed the flow on its East-West pipeline to send oil to Yanbu port, but this redirection has capacity issues.

The UAE redirected its flows to Fujairah port outside the Strait of Hormuz, but also faces capacity constraints. ADNOC plans to double the capacity of a pipeline to Fujairah by next year.

As importers scramble for new suppliers, global energy imports have risen by $330 billion over six months due to higher prices, with Brent crude and WTI trading above $90 per barrel.