Saudi Arabia finds way to bypass Strait of Hormuz – But there’s a catch
Illustrative photo: Saudi Arabia proposes transporting oil through the Red Sea (Getty Images)
Saudi Arabia has proposed an alternative route for oil shipments while the Strait of Hormuz remains blocked. The plan involves the port of Yanbu on the Red Sea, but there are several nuances to consider, according to Antena 3 CNN.
The 1,200-kilometer pipeline can only carry a small amount of oil, so the same volumes that pass through the Strait of Hormuz are unattainable. Additionally, the maritime route to Asia from the Red Sea bypasses the Arabian Peninsula. This route is longer than the one from the Persian Gulf, which increases both transport time and costs.
For this reason, buyers using Yanbu receive smaller quantities of oil than stipulated in their contracts. Some European refineries have already complained about this. At the same time, most of Saudi Arabia’s oil is intended for sale to Asian countries under long-term contracts.
Strait of Hormuz: Situation
In response to a US and Israeli military operation, Iran has effectively closed the Strait of Hormuz. Up to 20% of global oil supplies pass through it, and the disruptions have already caused oil prices to rise.
US President Donald Trump called on Europe and other countries to help reopen the strait. However, he was refused, notably by France and Germany, after which he called the NATO allies’ refusal "a very foolish mistake."
It is known that European countries are holding confidential talks with Tehran, trying to find a diplomatic solution to the crisis and prevent further escalation in the region. This greatly frustrates Trump, who is preparing exclusively military options to unblock shipping.
