Nick Childs
When the Houthis threatened shipping in the Bab el-Mandeb Strait from November 2023, the dire economic consequences that were forecast did not materialise, in part because shippers could reroute around the Cape of Good Hope. There was also sufficient shipping capacity to cope, and markets adapted. The Strait of Hormuz is different. It accounts for 20% of all internationally traded oil, 34% of seaborne oil-trade flows and 30% of liquefied natural gas exports. It is also the only maritime route in and out of the Gulf.
There are pipeline alternatives, but they have only about one-third of the capacity that normally flows through the Strait of Hormuz. There have long been calls to build more pipelines, and even a canal, to bypass the strait. However, building sufficient capacity would be a challenge. And recent events have shown that canals and fixed land-based energy infrastructure have their own vulnerabilities.
No comments:
Post a Comment