U.S. Energy Secretary Chris Wright told CNBC on Friday that the importance of Hormuz to the global energy market will decline after the Iran war, as Gulf nations build more pipelines to bypass it.
“This is a card you can play once,” Wright said of Iran’s blockade. “There’ll be other routes for energy to get out of the Persian Gulf.”
“We will see a decreasing importance from the Strait of Hormuz, but not a decreasing importance of those nations’ energy production and energy supply,” he said.
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The new pipeline is expected to add to the UAE's existing Habshan-Fujairah line, which can move as much as 1.8 million barrels a day, according to the Guardian. If the new project effectively doubles that capacity, the UAE would be in a much stronger position to keep exports flowing even if the maritime route remains constrained.
The actual added capacity of the pipeline addition has not been publicly announced, although a potential doubling would bring the UAE's exports above half of that of Saudi Arabia.
The disruptions around the Strait of Hormuz are showing how a single ripple can affect daily life around the world. When oil and gas shipments are squeezed, the effects can show up in higher gasoline prices, more expensive shipping, and rising utility costs for households and businesses.
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Iran has permanently demonstrated why every viable capital project should avoid the Strait.
And a dollar is now worth 1.3 million rials. The Iranian currency has lost half its value. And the economy is in extremis.
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Quite a fine for it’’s rogue actions and there’s more to come.
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Iran holds leverage over the Strait not Trump or America. Iran is holding all the cards as the world’s economies go into recession with the possibility of some coming to a grinding halt.
The blithering Buffoon that is Trump severely miscalculated by thinking that sanctions had weakened the Iranian economy and that the timing was perfect to attack Iran. He had other delusions, one that the war would be over in days and that the Iranian public would oust their leaders and take over their country.
The process was wrong from the get go by breaking negotiations half way through and by sending in two lightweights to negotiate with heavyweight Iranian negotiators.
By insulting and humiliating Iran he only hardened the resolve of the Iranian leadership. Threatening to destroy a whole civilisation has shown itself up as stupidity on stilts.
More than half of Americans suffered(TDS) Tone deaf Syndrome, more than half bought his BS, some are too dumb to learn from it while I hope most will so that the horror is never repeated.
Single-handedly Trump has changed the world order and economy…..not for the better.
God help us.