The Middle East escalation has cut off a number of American allies from the vital Strait of Hormuz
FILE PHOTO. © Getty Images / MAGNIFIER
Oil
producers in the Gulf region have lost an estimated $15.1 billion in
energy revenues since the launch of the US-Israeli strikes on Iran, the
Financial Times reported on Friday, citing estimates by analytics firm
Kpler.
The US and Israel conducted coordinated strikes on the
Islamic Republic in late February, triggering Iranian retaliatory
attacks across the region. The escalating crisis effectively shut down
the Strait of Hormuz – a critical route that handles roughly one-fifth
of the world’s daily oil and gas supply – as Tehran barred ships from
non-friendly nations, sending global crude prices soaring nearly 50% to
$120 per barrel.
The Strait of Hormuz is estimated to carry around
$1.2 billion worth of crude oil, refined products, and liquefied
natural gas (LNG) daily, based on average prices and volumes recorded
last year. According to Florian Gruenberger of Kpler, as cited by the
FT, current flows through the waterway are “negligible” compared with prewar levels.
Among
the halted shipments, crude oil reportedly represents the largest
share, accounting for 71% of the total value. At least $10.7 billion
worth of crude, refined oil products, and LNG cargoes remain stranded
inside the maritime route, according to Kpler.
Saudi Arabia, the world’s second biggest oil producer, has reportedly
been hardest hit, missing out on $4.5 billion in energy revenues since
the start of the conflict, while Iraq, which relies on oil production
for 90% of government revenues, is said to be among the most exposed.
Other major producers in the region, including the UAE, Kuwait, and
Bahrain, have also faced significant losses.
Gulf oil producers,
including Saudi Arabia, Iraq, the UAE, Kuwait, and Bahrain, have
deferred $13.3 billion in sales and tax revenue due to disruptions in
oil shipments, according to UK-based consultancy Wood Mackenzie, as
cited by the FT.
On Friday, US President Donald Trump told Fox
News that American forces would escort vessels through the Strait of
Hormuz if necessary. Last week, Trump urged tanker crews sailing through
the vital waterway to “show some guts.”