Red Sea's Viability as Hormuz Alternative During Global Oil Crisis
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Red Sea: A Viable Alternative to Strait of Hormuz Amid Oil Crisis?
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Firstpost•19-03-2026, 13:35
Red Sea: A Viable Alternative to Strait of Hormuz Amid Oil Crisis?
•The Strait of Hormuz, a vital oil and gas transit route, faces effective shutdown due to West Asia conflict and Israeli strikes on Iranian gas facilities.
•Brent crude surged to nearly $110 per barrel as the Strait of Hormuz, responsible for 20-21 million barrels of oil per day, became inaccessible.
•Saudi Arabia, UAE, and Iraq activated pipelines to redirect oil, but combined alternative routes can only handle about 7 million barrels per day, leaving a 13-14 million barrel deficit.
•The Red Sea, while an alternative, shifts vulnerability to the Bab el-Mandeb Strait, where Houthi attacks have halved oil flows and increased shipping costs.
•LNG transport is severely impacted as Qatar, a major supplier, relies entirely on the Strait of Hormuz, leading to surging spot prices.
