Can Hormuz be bypassed? Past shows commercial viability may simply not be there, analyst says
Summary
At the G7 summit, leaders discussed ways to avoid using the Strait of Hormuz for oil transport. An analyst said past attempts to build alternative routes were not financially practical because the cost was too high compared to the benefits.Key Facts
- The G7 summit took place in Evian-les-Bains.
- President Donald Trump said the Strait of Hormuz would be "completely open" starting Friday.
- The Strait of Hormuz is a key route for transporting oil from the Middle East.
- Alternatives to the Strait of Hormuz have been considered before to prevent supply disruptions.
- Past projects to bypass the strait were not commercially viable, meaning profits did not justify the cost.
- High initial investment costs made alternative routes difficult to build.
- Maisoon H Kafafy is a senior advisor on Middle East issues at the Atlantic Council.
- The discussion reflects concerns about oil supply security in the region.
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