Mar 11 • 15:05 UTC 🇬🇷 Greece Naftemporiki

BBC Analysis: How oil producers are trying to 'bypass' the Strait of Hormuz

Saudi Arabia is increasing oil flows through its East-West pipeline to circumvent the Strait of Hormuz amid ongoing conflicts with Iran.

Saudi Arabia is responding to heightened geopolitical tensions in the Gulf by increasing oil flows via its East-West pipeline. This pipeline, which stretches 750 miles (1200 km), allows crude oil to be transported from Persian Gulf fields to export terminals on the Red Sea. This strategy enables oil shipments to bypass the Strait of Hormuz, a critical chokepoint for global oil transportation and a site of ongoing conflict with Iran.

The East-West pipeline was previously transporting about 2.8 million barrels of oil per day, but recent developments have prompted Saudi Aramco to push operations to their maximum capacity of approximately 7 million barrels per day. The capacity shift comes as tankers are adjusting their loading operations to the kingdom's Red Sea ports, enhancing Saudi Arabia's ability to maintain exports even amid rising tensions in the region.

As Saudi Arabia and the UAE are among the few Gulf producers with pipelines designed to divert oil away from the Strait of Hormuz, their decisions hold significant implications for global oil prices and the overall stability of energy markets. By leveraging alternative routes, these nations are not only securing their own economic interests but also demonstrating strategic resilience in the face of regional conflicts that threaten maritime security and trade routes.

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