Since the conflict between the US-Israeli coalition and Iran broke out 11 days ago, the Strait of Hormuz - the shipping route that transports 20% of global crude oil and liquefied gas - has fallen into a state of paralysis. Every day, about 20 million barrels of oil are cut off from world supply.
The volume of oil tankers passing through here has seriously decreased after the Iranian Islamic Revolutionary Guard Corps announced it would attack any vehicles using this route.
Aramco CEO, Mr. Amin Nasser, said this is the biggest crisis in the history of the regional energy industry. To respond, Saudi Arabia is making efforts to coordinate the flow through the east-west pipeline to Yanbu port in the Red Sea.
It is expected that the replacement route will soon reach a capacity of 7 million barrels/day, helping to maintain about 70% of the country's normal export output to reduce the pressure of supply shortages.
Despite negative forecasts, world oil prices recorded a sharp drop at the end of March 10 after US President Donald Trump hinted at the possibility of an early end to the conflict.
Brent oil prices fell 14%, to about 85 USD/barrel. Although still higher than the 72 USD/barrel before the start of the shooting, this figure has cooled down significantly compared to the peak of 119 USD/barrel at the beginning of the week - the highest level since the conflict in Ukraine broke out in 2022.
Faced with the risk of a prolonged crisis, G7 leaders have asked the International Energy Agency (IEA) to prepare a plan to release emergency reserves. Currently, IEA member states hold more than 1.2 billion barrels of strategic oil reserves.
China - the world's largest energy importer - is estimated to have a record reserve of up to 1.4 billion barrels of oil. This proactiveness has helped the stock market from the UK to the US have a slight recovery in the most recent trading session.
However, experts warn that using reserves is only a short-term solution. If the blockade in the Strait of Hormuz is not resolved thoroughly, the world economy may face a major energy crisis similar to the 1970s.
In this context, control of energy corridors has become a strategic weapon capable of deciding the global economic situation faster than direct military operations.
