Strait of Hormuz

Some big shipping companies are starting to reroute through the iconic waterway once again, with more problems currently in the Strait of Hormuz and the Arabian Gulf than in the Red Sea

Even if diplomatic progress continues, the Strait could be closed again. As a result, the geopolitical risk premium attached to Gulf energy exports is unlikely to disappear entirely.

After 15 weeks of effective closure, shipping routes, energy markets, and supply chains have been reshaped, leaving changes that could endure long after the war has ended

Beijing's export restrictions on sulphuric acid are pressuring fertilisers, metals, and clean energy industries, exposing fragile supply chains as disruption spreads around the Strait of Hormuz

Even when appeals to open the Hormuz Strait come from a close ally like Beijing, they fall on deaf ears in Tehran. But hope is not yet lost.

With maritime traffic in the critical waterway severely disrupted, interest in alternative routes grows. But the same constraints persist.

With Iran's effective closure of the Strait of Hormuz, alternatives for Gulf energy transit are being sought. Could the Saudi landmass straddling two seas be bridged for the benefit of all?