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Oil and gas exports from the Gulf face renewed disruption as fighting between the US and Iran intensifies. For both countries, control of the Strait of Hormuz is key.

Over the past months, Iran has shown that it can control or at least disrupt the strait, says Guntram Wolff, a senior fellow at Bruegel, a think tank, and a professor of economics at the Free University in Brussels.

"Several months of bombing campaigns have not undone Iran's ability to control the Strait of Hormuz," said Wolff, leaving the US with the challenge of trying to get the upper hand.

This week, traffic in the strait has again nearly stopped as Iran attacked tankers and fired drones and missiles at military facilities in Bahrain, Kuwait and Jordan.

The US launched more strikes on Iran and restarted a naval blockade of its ports. It also revoked a sanctions waiver that let Iran openly sell its oil, which brought in much-needed money.

Coverage Comparison

Deutsche Welle's reporting on the situation focuses on the intensifying conflict and its direct impact on energy exports. The outlet highlights the strategic importance of the Strait of Hormuz for both the US and Iran, and details the recent military actions taken by both sides. The coverage also emphasizes the sharp decline in oil and gas flows through the strait, and notes that Saudi Arabia and the UAE have alternative export routes that avoid the waterway.

Key Claims

  • Iran has demonstrated the ability to control or disrupt the Strait of Hormuz, a capability that has not been undone by several months of US bombing campaigns.
  • The US has launched more strikes on Iran, restarted a naval blockade of its ports, and revoked a sanctions waiver that had allowed Iran to sell its oil openly.
  • A preliminary US-Iran ceasefire deal signed on June 17 is no longer in force.
  • Oil and gas flows through the Strait of Hormuz have declined sharply since the conflict escalated.
  • Before the war started on February 28, the Strait of Hormuz was a toll-free international waterway and the gateway for around 20% of global liquefied natural gas (LNG), according to the International Energy Agency.
  • Around 20% of the world's oil was transported out of the Persian Gulf via the waterway to the Arabian Sea and beyond, with the majority going to Asia.
  • For the past few years, the average daily oil flow through the strait was around 20 million barrels, according to the US Energy Information Administration.
  • Flows fell to about 14.6 million barrels a day in the first quarter and have decreased further since the conflict escalated.

Pipeline Alternatives

Saudi Arabia and the UAE have alternative export routes that avoid the Strait of Hormuz. These pipelines provide a means to continue exporting oil and gas even when the strait is disrupted. The existence of these routes is seen as a key factor in the region's ability to mitigate the impact of the conflict on global energy markets.