Gulf countries' oil export efforts amid artery blockade
Tensions are escalating in the Strait of Hormuz and the Bab el-Mandeb, threatening global oil flows and forcing Gulf countries to resort to alternative routes for transporting their oil exports. With the Strait of Hormuz closed due to the US-Iranian conflict and the maritime threats from the Houthis in the Red Sea, the Red Sea route has become more critical, transforming into a strategic alternative connecting Asian and European markets. As a result of these developments, shipping companies have been compelled to use longer routes, such as the Cape of Good Hope, leading to an increase in shipping costs of over $2.5 million per voyage, with journey durations rising from 19 to 48 days. This affects global fuel prices and goods. Additionally, Saudi Arabia, the UAE, and Iraq have turned to other alternatives like enhanced pipelines, albeit with limited capacities. These measures further intensify pressure on the global oil supply and exacerbate worldwide economic challenges.
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