Strait of Hormuz Remains Central to Middle East Energy Politics
The Middle East is exploring alternative routes for oil and gas exports to reduce dependence on the Strait of Hormuz, but this may not provide a permanent solution. The Strait remains a crucial waterway for global energy trade, with 20% of the world's energy passing through it. Pipelines are being built or expanded in the region, but they have limitations and vulnerabilities.
Qatar, one of the world's top liquefied natural gas (LNG) producers, faces challenges in finding alternative routes to ship its exports. The country has notified one of its biggest European customers that it will be unable to deliver three LNG cargoes due to force majeure until the end of September.
Saudi Arabia is also struggling with alternatives, as most pipelines and ports beyond the Strait remain within range of Iranian and Houthi missiles and drones. The UAE has a $3 billion pipeline project under construction that will double its oil pumping capacity to the Gulf of Oman port of Fujairah, but it may not be enough to reduce risk.
Iraq's pipeline plans are also vulnerable to attacks by Iran and Iraqi militias. Despite efforts to diversify energy routes, the Strait of Hormuz remains a key player in the region's energy game.