Middle East War Traps Energy Supplies in Vulnerable Corridors

The Gulf's energy system is facing unprecedented challenges due to the ongoing war involving Iran, Israel, and the United States. The conflict has transformed the region from a relatively predictable energy corridor into a network of exposed strategic targets.

The Strait of Hormuz remains the central vulnerability, with around 20 million barrels of oil and petroleum products crossing it every day, representing about a quarter of global seaborne oil trade. However, bypassing Hormuz does not necessarily mean escaping the war, as demonstrated by the attack on Saudi Arabia's East-West pipeline.

The pipeline was designed to reduce Saudi Arabia's dependence on Hormuz but has now become a target itself after drone strikes damaged infrastructure along the route. This changes the entire calculation, making alternative routes less reliable and creating a strategic dependency on vulnerable corridors.