Shifts in Gulf Oil Export Routes
The article reveals the impact of escalating tensions in the Strait of Hormuz and Bab el-Mandeb on global oil flows, where the situation has necessitated Gulf countries to adopt alternative routes for oil transportation due to increasing risks along major maritime transit corridors. Given the closure of the Strait of Hormuz and the threat posed by Houthi threats to navigation in the Red Sea, Saudi Arabia has increased its reliance on the East-West pipeline to transport oil. Meanwhile, companies have had to resort to the Cape of Good Hope route, which has led to an increase in shipping times from approximately 19 to 48 days and a rise in shipping costs by more than $2.5 million per shipment. The UAE has also begun directly exporting oil via the Habshan/Fujairah pipeline, and Iraq has successfully operated the Kirkuk-Jihan pipeline, though their capacities remain limited compared to the volume of overall exports. Reports confirm that diversifying routes does not prevent the rise in costs, which will later affect commodity prices, making the stability of maritime transit routes a key factor in ensuring global economic stability.
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