Hormuz unrest exposes limits of Gulf oil export alternatives | The National
Oil tankers are avoiding the Strait of Hormuz due to Iran conflict risks, almost halting traffic. Saudi and UAE pipelines can bypass it but capacity is limited, leaving global markets exposed. The strait normally handles 20 million bpd, half from Saudi/UAE. While not formally closed, insurers are pulling coverage and shipping costs are soaring. Oversupply and high global inventories may limit price spikes, but alternative routes can't replace the strait short-term.
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