Analysis: Is the Gulf ready for a new round of war and its repercussions on energy security?

An analysis by Foreign Policy magazine examines the readiness of Gulf states for a new round of war and its repercussions on energy security, noting that the continued flow of oil does not mean the safety of facilities that have suffered damage that may take years to rebuild.

An analysis by Foreign Policy magazine examines the readiness of Gulf states for a new round of war and its repercussions on energy security. The analysis indicates that the continued flow of oil and gas does not mean the safety of production and transportation facilities, as refineries, liquefied natural gas facilities, and export terminals have been subjected to missile and drone attacks by Iran, and the Houthis have opened an additional front in the Red Sea. Rebuilding essential parts of these facilities could take years. According to data from Kepler, average oil shipments through the Strait of Hormuz and alternative routes exceeded 24 million barrels per day in the week ending October 18, surpassing the pre-war level of 23.3 million barrels per day. Analysts at JPMorgan believe that energy markets are moving towards adapting to a prolonged conflict, an assessment that reinforced the belief within the administration of US President Donald Trump that the region could absorb a new military round. However, the analysis argues that this perception confuses continued flow with facility safety.