WorldEconomy
Gulf oil producers turn to alternative routes as Strait of Hormuz disruption persists, costs mount
Gulf producers have kept oil flowing via alternative routes and unused pipeline capacity since the Strait of Hormuz was closed at the start of the war, with analysts estimating about 6 million barrels a day or more moving on a "dark shuttle route," though costs are rising.
When Iran closed the Strait of Hormuz at the start of the war, sea passage for roughly 15 million barrels of oil a day was cut off, raising fears of skyrocketing prices and damage to the world economy. Nearly seven months on, according to the account, oil is expensive but not exorbitant, and analysts say supply is broadly sufficient to meet current global demand — even as higher prices create political problems for U.S. President Donald Trump and others.
Saudi Arabia and other Gulf producers quickly found alternative routes and made use of unused pipeline capacity, the account says. When Iran and its militant allies targeted those alternatives, the oil exporters and the U.S. military found further workarounds — described as an often clandestine game of whack-a-mole.
Analysts estimate that about 6 million barrels of oil per day or more have been passing through the Strait of Hormuz on the "dark shuttle route" on average, amounting to some 40% or more of prewar flows.
The account does not specify how long the arrangements can be sustained or detail the full extent of the mounting costs.
- Donald Trump
- Gulf nations
- Strait of Hormuz
- Iran War
From
WorldEconomy
Gulf oil producers turn to alternative routes as Strait of Hormuz disruption persists, costs mount
Gulf producers have kept oil flowing via alternative routes and unused pipeline capacity since the Strait of Hormuz was closed at the start of the war, with analysts estimating about 6 million barrels a day or more moving on a "dark shuttle route," though costs are rising.
When Iran closed the Strait of Hormuz at the start of the war, sea passage for roughly 15 million barrels of oil a day was cut off, raising fears of skyrocketing prices and damage to the world economy. Nearly seven months on, according to the account, oil is expensive but not exorbitant, and analysts say supply is broadly sufficient to meet current global demand — even as higher prices create political problems for U.S. President Donald Trump and others.
Saudi Arabia and other Gulf producers quickly found alternative routes and made use of unused pipeline capacity, the account says. When Iran and its militant allies targeted those alternatives, the oil exporters and the U.S. military found further workarounds — described as an often clandestine game of whack-a-mole.
Analysts estimate that about 6 million barrels of oil per day or more have been passing through the Strait of Hormuz on the "dark shuttle route" on average, amounting to some 40% or more of prewar flows.
The account does not specify how long the arrangements can be sustained or detail the full extent of the mounting costs.
- Donald Trump
- Gulf nations
- Strait of Hormuz
- Iran War
From