Hormuz Trap Chilean: Gulf and Iraq Reassess Economic Security
The article discusses the importance of strengthening security and supply chains in the Gulf region and Iraq to face geopolitical challenges and tensions in the Strait of Hormuz. It highlights how reliance on this strait, through which approximately 20 million barrels of oil pass daily, presents a significant risk due to potential military escalation and increased maritime insurance costs, which could multiply tenfold during periods of tension. Therefore, Gulf countries are moving toward building a unified logistical network that includes land passages and pipelines connecting the Red Sea and the Arabian Sea to shield their supplies from extortion or potential blockage. As for Iraq, it aims to enhance its geopolitical position through projects such as a railway network and the Al-Faw Grand Port, creating alternatives that reduce dependence on the Strait of Hormuz and support its economic security. However, the success of these projects depends on improving the investment environment and infrastructure, in addition to competing with similar initiatives like the US-backed Economic Corridor. This requires decision-makers to adopt integrated strategies that promote regional integration and transform economies into genuine manufacturing bases, rather than relying solely on oil.
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