Topic
chokepoint
Logistics Gulf nations invest billions in pipelines to bypass Strait of Hormuz amid rising risks
Gulf nations are accelerating multi-billion-dollar pipeline projects to create alternative oil export routes bypassing the Strait of Hormuz, which has faced repeated disruptions. Seven major pipelines are under construction or planned, including UAE's $3 billion Fujairah pipeline and Iraq's proposed Basra-to-Ceyhan line. Existing routes from Saudi Arabia and UAE are already operating near capacity. The shift will reduce dependence on the narrow strait but introduces new risks, such as Houthi blockades in the Red Sea.
Logistics Iran Primes Houthis to Shut Bab el-Mandeb, Risking Global Shipping Disruption
Iran has reportedly asked Yemen's Houthi movement to prepare to close the Bab el-Mandeb Strait if the US attacks Iranian power infrastructure. Missiles and drones have been deployed near the strategic waterway, according to sources. The move threatens to choke a critical chokepoint for global trade, forcing further diversions around Africa and driving up freight costs.
Commodities IEA warns global energy security at risk if Strait of Hormuz oil flows are not restored
IEA Executive Director Fatih Birol warned on July 17, 2026, that global energy security is at risk if oil flows through the Strait of Hormuz are not restored in the next few weeks. The waterway has been mostly blocked since the conflict began on February 28 with U.S. and Israeli strikes on Iran. Birol highlighted that China's stockpile of over 1 billion barrels and an IEA-coordinated release of up to 400 million barrels have moderated price rises, but these measures cannot last indefinitely.
Logistics Strait of Hormuz Operations at Risk as Iran-Oman Toll Plan Threatens Global Oil and LNG Flows
Iran and Oman are considering charging ships for transit through the Strait of Hormuz, a vital chokepoint for about one-fifth of global oil and LNG trade. The move follows a months-long blockade triggered by conflict, and despite a June 17 MoU that reopened the strait, attacks on vessels continue. The legal status of such tolls is disputed, with the US warning of 'total chaos'.
Commodities Strait of Hormuz Closure: Fitch Says High Oil Prices a Temporary Shock as Supply to Return to Surplus
Fitch Ratings expects the Strait of Hormuz to reopen by end of July, bringing oil prices back to an average of $87 per barrel in 2026. The agency says the recent surge is a temporary logistical bottleneck, not a permanent supply loss, and markets will return to surplus from September.
Logistics Strait of Hormuz Closure Hits 100 Days as Dark Tanker Trade Masks True Oil Flow
The Strait of Hormuz has been effectively closed for more than 100 days, causing a 95% reduction in crude shipments from Arabian Gulf ports and a 99% drop in LNG carriers, according to WTO data. The 'dark trade' of vessels running without AIS transponders makes actual oil flows difficult to quantify, but analysts estimate 100 million barrels may have moved through since May 1. Despite the disruption, Brent crude sits at $87.55 per barrel due to buffers from China, the US, Brazil, and Canada. Recovery may take years, with IEA warning of up to two years for energy facility repairs.