Countries Build Oil Pipelines to Bypass Iran-Controlled Strait of Hormuz
Oil-producing countries are building new pipelines to move oil around the Strait of Hormuz, a narrow waterway controlled by Iran. Saudi Arabia has already prepared backup routes after recent strikes effectively closed the crucial shipping lane.
The Strait of Hormuz has become the world's most dangerous oil chokepoint. This narrow waterway between Iran and the Arabian Peninsula carries about one-fifth of global oil supplies every day.
Iran has repeatedly threatened to block the strait during tensions with the US and other countries. When recent strikes on Iran led to the waterway's closure, it proved how vulnerable the world's energy supply really is.
Saudi Arabia saw this coming. The kingdom spent decades planning backup routes and quickly activated alternative pipelines when the strait closed. Other oil producers in Iraq and Kuwait are now building similar bypass routes.
The solution involves constructing new pipeline corridors that carry oil and natural gas from southern Iraq and Kuwait northward through Iraqi Kurdistan. This creates multiple paths for oil to reach global markets without passing through Iranian-controlled waters.
These infrastructure projects represent a major shift in global energy security. Countries are essentially building an insurance policy against Iran's ability to disrupt world oil supplies.
About 20% of the world's oil passes through this narrow strait. When it gets blocked, gas prices spike globally. These new pipelines could keep oil flowing even if Iran shuts down the waterway during conflicts.
More pipeline projects will likely be announced as countries seek energy security alternatives.
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