Strait of Hormuz Crisis Underscores Need for Diversified Energy Routes

The Strait of Hormuz crisis highlights the risks of relying on a single transit route for global energy flows. The closure of this vital waterway has disrupted trade and triggered economic disruptions across regional and global markets.

A report by the US-based think tank 'Middle East Forum' notes that the Strait of Hormuz constitutes the only entry and exit point for the Persian Gulf, making it vulnerable to blockades.

According to the report, in the 1980s, Saudi Arabia built a pipeline network to transport energy resources from the Abqaiq oil processing facility in eastern Saudi Arabia to the Red Sea port of Yanbu. This alternative pipeline has a capacity of around seven million barrels per day.

The report also mentions that the United Arab Emirates inaugurated an oil pipeline from Habshan to the Gulf of Oman port of Fujairah in 2012, and is currently working on expanding this network with a new pipeline expected to be online by 2027.