The Strait of Hormuz has been blocked for several weeks, disrupting one of the main routes of global oil trade. To maintain its exports, Saudi Arabia has increased its East-West pipeline to full capacity. This technical response is not enough to compensate for the market disorganization. The rapid rise in crude prices reveals a structural fragility of global supplies, in a context of growing geopolitical tensions.
In brief
- The prolonged blockage of the Strait of Hormuz is disrupting a major axis of global oil trade.
- Saudi Arabia is activating its East-West pipeline at full capacity to maintain exports.
- This solution makes it possible to redirect part of the oil, without completely compensating for the lost volumes.
- The market remains under tension, with a rapid rise in crude prices amid uncertainty.
Saudi pipeline pushed to its limits
Saudi Arabia has activated its East-West pipeline to full capacity, reaching 7 million barrels per day, in order to bypass the closure of the Strait of Hormuz. Indeed, the CEO of Saudi Aramco, Amin Nasser, declared on March 10 that the pipeline would reach full capacity within a few days.
This 1,200 kilometer infrastructure connects the oil fields of Abqaiq to the port of Yanbu on the Red Sea. Faced with a paralyzed maritime corridor, Riyadh relies on this land axis to maintain its oil exports and limit the impact on the world market.
The Strait of Hormuz, a strategic passage for energy trade, is seeing its traffic collapse by 90 to 95%, although it usually provides nearly 20% of global supplies. In this context, the pipeline becomes a direct alternative, redirecting part of the oil flows towards the west of the country.
This emergency configuration reveals the central role of this infrastructure in the Saudi energy strategy.
- Pipeline capacity is increased to 7 million barrels per day
; - Traffic in the Strait of Hormuz is down 90 to 95%;
- The area represents around 20% of global supply;
- The distribution of flows: 2 million barrels per day for domestic consumption, and 5 million barrels per day intended for export via Yanbu.
An energy crisis already visible on the markets
The disruption in supply is immediately reflected in prices. The barrel of WTI is approaching $100, recording an increase of around 40% in one month, while Brent is moving between $105 and $112 and Dubai crude is reaching around $126.
Faced with this tension, the authorities released nearly 400 million barrels from strategic reserves, an unprecedented level. Despite this massive intervention, analysts evoke a scenario where oil prices could rise between 150 and 200 dollars if the situation persists.
The origin of this crisis dates back to strikes carried out by the United States and Israel against Iranian installations, followed by a closure of the strait by Tehran. This military escalation transforms a strategic crossing point into geopolitical leverage, with immediate repercussions on the global economy. The use of alternative infrastructures such as the Saudi pipeline shows its limits in the face of a shock of this magnitude.
Thus, bitcoin evolves in a macroeconomic context under tension, where energy shocks and inflation reinforce its role as an alternative asset in the face of the uncertainties of traditional markets.
In the long term, this could accelerate the reconfiguration of energy routes and increase investment in workarounds to stem the explosion in oil prices. It also fuels a climate of uncertainty in financial markets, where energy acts as a catalyst for inflation and volatility. In this environment, economic balances could be permanently redefined, with indirect effects on all asset classes, including the crypto market.
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