Saudi Arabia Finds Alternatives to Strait of Hormuz Amid Ongoing Uncertainty
Months of blockades and uncertainty around the Strait of Hormuz have pushed energy exporters to look for alternatives. Iranian officials had insisted the waterway would remain closed unless the United States complied with a June framework agreement and offered compensation to Tehran for alleged violations.
US President Donald Trump, however, said on Monday that the US Navy already controls the Strait of Hormuz, claiming 'We've mine swept the entire strait.'
The narrow waterway between Iran and Oman is one of the world's most critical oil shipping routes. Before the Iran war, it carried around 20% of global crude exports from the Persian Gulf to markets in Europe, Asia and North America.
Saudi Arabia has demonstrated that it can redirect substantial volumes away from the Strait of Hormuz by sending its crude through the East-West Pipeline from the kingdom's eastern oil fields to the Saudi Red Sea port of Yanbu. This allowed the country to keep up shipments to global markets despite the closure.