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The Economic Times
The Economic Times
Business

Saudi oil can still get out — but it won’t be cheap or easy

Early on in the Iran war, a long-forgotten pipeline built across Saudi Arabia 40 years ago became a lifesaver for the global economy. The East-West conduit allowed the kingdom to bypass the Strait of Hormuz, keeping some of its oil flowing. Now that the Houthis of Yemen are trying to close an essential chokepoint for that workaround, the Saudis may need a bypass for the bypass.

Engineering a new detour that avoids the Bab el-Mandeb strait on the southern end of the Red Sea would be a tall task. It would require the use of one, perhaps two, extra pipelines, quite a lot of oil tankers and a good dosage of Middle Eastern cloak-and-dagger diplomacy to keep everything running despite the threat of missiles and drones. It won’t be easy — or cheap.

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