New Delhi: There was a time when it seemed that easing tensions in West Asia might lead to the Strait of Hormuz fully opening up. However, that hope has now completely faded. In a major setback to peace efforts, a crucial meeting scheduled for today (Monday) between Iran and Gulf nations has been suspended. Amidst airstrikes near oil routes, the threat of a crisis in oil supplies has resurfaced. Saudi Arabia, the world’s largest oil exporter, has completely shut down a key oil supply line.
This pipeline sustained damage in a drone attack last Friday. The supply chain faces a crisis due to the tense situation involving Iran, the US, Israel, Saudi Arabia, and Houthi rebels in the Middle East.
Worsening Situation in Iran and Gulf Nations
Meanwhile, Oman’s Foreign Minister, Sayyid Badr Albusaidi, shared significant information late Sunday night. He stated that the regional meeting scheduled for Monday has been postponed to allow for the building of mutual consensus. Iran had also been preparing to participate in this meeting.
The meeting was intended to deliberate on establishing regulations for ships passing through the Strait of Hormuz. According to Iranian officials, the meeting was deferred at the request of certain regional nations. Iran and Oman are now expected to consult each other to determine a new date.
Saudi Arabia Shuts Down Oil Pipeline
In light of persistent attacks by Houthi rebels, Saudi Arabia has shut down its approximately 1,200-kilometre-long East-West oil pipeline. This pipeline plays a vital role in transporting oil via an alternative route, bypassing the Strait of Hormuz. Saudi Arabia holds sufficient oil reserves at the Yanbu port on the Red Sea coast to continue oil exports for about five to seven days, even while the pipeline remains closed.
Meanwhile, if the pipeline remains disrupted for an extended period, approximately 4 per cent of the global oil supply could be affected. This is in addition to the oil supplies already impacted by disruptions to shipping traffic in the Strait of Hormuz. Details regarding the extent of the damage to the pipeline and the cost of repairs have not yet been disclosed.
Looming Threat in Hormuz
It is worth noting that the Strait of Hormuz,z one of the world’s most critical oil routes, es is also not entirely secure. According to the British maritime security agency UKMTO, a vessel passing through the area was struck by an object on Sunday.
The vessel caught fire following the attack, forcing the crew to evacuate. Iran also reported an attack on a commercial vessel near its coast, resulting in one fatality and four injuries.
