U.S., Israel, Saudi Arabia Unite to Bypass Iran-Controlled Shipping Lanes
Iran's control over critical Middle Eastern shipping lanes has sparked a global effort to reduce its influence on oil exports. The U.S., Israel, and Saudi Arabia have launched a joint plan to bypass the Strait of Hormuz and Bab el-Mandeb Strait by building an integrated refinery and energy export corridor outside these chokepoints.
The $5 billion project, led by the MERA Oil consortium, will feature a 200,000-barrel-per-day refinery linked to deepwater port infrastructure. This will provide a secure route for oil exports, reducing reliance on Iranian-controlled shipping lanes.
The U.S. also plans to revive its India-Middle East-Europe Economic Corridor (IMEC), which could divert up to 60% of container traffic currently risking transit through the Strait of Hormuz. IMEC's eastern maritime leg will link India's western ports to the Arabian Gulf, while a northern overland rail network runs through Saudi Arabia and Jordan to Israel's Port of Haifa.
A secret plan involving an overland pipeline across the Saudi desert to the Israeli border is also being discussed. This would allow oil exports to bypass both Iran and the Houthis, providing a secure route for Gulf countries to export their primary source of income.