Dependence on the Strait of Hormuz Declines
Global oil markets are becoming independent of the Strait of Hormuz.
1Importance of the Strait of Hormuz
The Strait of Hormuz is a strategic waterway through which a significant portion of the world's oil trade passes. Under Iran's control, this strait plays a critical role in global energy markets.
2US Alternative Route
The US attempted to create an alternative route bypassing the Strait of Hormuz controlled by Iran but was unsuccessful. Iran's drone and missile attacks scared off commercial vessels.
3Reactions from India and Japan
India banned its crew from transiting the Strait of Hormuz. The chairman of the Japan Foreign Trade Council stated that the strait is impassable for commercial ships.
4Pipeline Solutions
To ensure oil supply, land routes such as Saudi Arabia's East-West pipeline and the UAE's Habshan-Fujairah pipeline were utilized. Capacities of these pipelines are being increased.
5New Projects
The UAE's new West-East pipeline has been accelerated and could be operational next year. A consortium including Chevron plans to rebuild the Kirkuk-Baniyas pipeline in Iraq.
6Future Predictions
According to Goldman Sachs, dependence on the Strait of Hormuz could drop below 60% in the coming years. Pipeline projects will significantly reduce this dependence.
Original article: Fortune | FORTUNE — Hürmüz Boğazı'na Bağımlılık Azalıyor