Energy security and waterways in light of new tensions in the MENA region by Syed Shahnawaz (Simon) Mohsin
Source: Financialtribune Syed Shahnawaz (Simon) Mohsin Independent Political and International Affairs Analyst Concerns of regional conflict in MENA threaten world energy security as the possibility of attacks on regional energy infrastructure rises. The region produces about 30% of global crude oil, the vast majority produced by Saudi Arabia, Iran, Iraq, Kuwait, and UAE. Three major oil transits or chokepoints—the Strait of Hormuz, Bab-el Mandeb Strait, and the Suez Canal—are in this region. About 40 million barrels of fuel pass through these waterways. Some argue that markets may underestimate the geopolitical and potential energy supply disruption risks. However, nuances must be considered. Palestine and Lebanon are not major oil producers. Thus, conflicts there do not directly threaten oil supplies. Nonetheless, a prolonged conflict involving Iran could lead to a significant increase in oil prices. In early October, oil prices increased to a two-year high after the US President m