G7 looks for alternatives to Strait of Hormuz; analyst cites commercial hurdles
G7 leaders discussed alternative routes bypassing the Strait of Hormuz, which US President Donald Trump pledged to 'completely open'. An analyst notes that past efforts failed due to commercial viability concerns.
At the G7 summit in Évian-les-Bains on Tuesday, leaders focused on identifying alternative routes to bypass the Strait of Hormuz. US President Donald Trump had stated on Friday that the strait would be 'completely open'. The discussions come amid heightened tensions in the region, which is critical for global oil shipments.
Maisoon H Kafafy, Senior Advisor to the Atlantic Council’s Middle East programme, told FRANCE 24's Sharon Gaffney that in previous instances of oil supply disruptions, 'the commercial viability [of building alternative infrastructure] was simply not there and the economics of the upfront investment into these projects were perhaps too large to justify'.
Kafafy emphasized that despite strong political will at present, historical experience shows that without a solid commercial foundation, such projects are difficult to realize. The Strait of Hormuz is one of the world's most important maritime chokepoints, handling about a fifth of global oil supply. The question of diversifying routes is not new, but so far no economically feasible solution has emerged.
