The Middle East conflict has once again thrust global energy supplies into the spotlight, and Saudi Arabia's strategic preparation for such a scenario is nothing short of impressive. The kingdom's reliance on the 1,200-kilometre East-West pipeline, built in the 1980s, is a testament to its foresight. This pipeline, running across the Arabian Peninsula from the eastern oil fields to the Red Sea port of Yanbu, has become the lifeblood of Saudi Arabia's oil exports, especially in times of crisis. The pipeline's ability to offset the impact of the Strait of Hormuz closure is a strategic masterstroke, ensuring the global economy remains stable. However, the Red Sea route is not without its risks. Vessels must still pass through the Bab El-Mandeb Strait, a critical chokepoint that has seen intermittent attacks from Houthi militants. This raises a deeper question: How can the Middle East ensure the security of its energy exports in the face of such threats? The broader implications of Hormuz being blocked are now becoming clear. The war has triggered a global energy shock, with commodity prices rising across sectors. Brent crude has climbed to its highest levels since Russia's 2022 invasion of Ukraine, up 55% in the three weeks since the conflict began, closing at $112.19 per barrel on Friday. Over the longer term, the crisis is likely to reshape energy strategies across the Middle East. Countries are increasingly evaluating alternative export routes and infrastructure resilience. Oman has been positioning its port of Duqm as a regional hub, with plans for large-scale storage capacity. The United Arab Emirates operates a 1.5 million-barrel-per-day pipeline to Fujairah in the Gulf of Oman, bypassing Hormuz, though that terminal has itself come under repeated attacks in recent weeks. Personally, I think the Middle East conflict has highlighted the importance of energy security and the need for countries to diversify their export routes. The East-West pipeline is a prime example of how strategic preparation can mitigate the impact of crises. However, the region must also address the risks associated with critical chokepoints like the Bab El-Mandeb Strait. In my opinion, the Middle East must invest in resilient energy infrastructure and explore alternative export routes to ensure the stability of global energy supplies. This is a critical step towards a more secure and sustainable energy future.
