Stay up to date with the latest market news
Should geopolitical tensions between the US and Iran continue to escalate following oil tanker attacks in Gulf waters, Iran may choose to act on its threat of blocking passage through the Strait of Hormuz. In such a scenario, the oil exporting countries of Bahrain, Kuwait, Qatar and Iraq, which rely on the waterway for their energy trade, are likely to be more affected than the UAE, Saudi Arabia and Oman, according to a comment from Moody’s Investors Services.
The closure of the Strait, which is responsible for almost a third of the total global transport of oil and gas each day, would impact the foreign exchange and fiscal revenues of the four oil reliant economies, the global ratings agency says.
On the other hand, Oman’s key ports are located outside of the Gulf, so its exports are likely be unaffected. Saudi Arabia’s East-West pipeline system transports crude from the oil-rich Eastern province to the port of Yanbu on the Red Sea, whilst the UAE’s Habshan-Fujairah pipeline bypasses the Strait of Hormuz, connecting the oil fields in Abu Dhabi to the export terminal in Fujairah. These alternatives would thus provide some insulation to these countries in the event of a closure of the Strait.
Moody’s, however, sees a very low probability of a military confrontation in the region.
To read more, visit Moody’s here.
Stay up to date
This website uses cookies to improve your experience. If you continue without changing your settings, we’ll assume you’re happy with this. You can change your cookie settings at any time by clicking here.
ACCEPTxNecessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Sarah-Jane Carter
BA (Hons) DipM
Head of Marketing
Sarah-Jane joined Cavendish Maxwell in January 2020 as Head of Marketing and is responsible for the development of the marketing strategy and execution across the Middle East region. An energetic and results driven marketer, Sarah-Jane possesses a wealth of multi-channel marketing experience, within both B2B and B2C environments which she has gained over a 25 year career. Prior to joining Cavendish Maxwell, Sarah-Jane held senior marketing positions for major developers in Dubai including Emaar, Dubai Properties and Dubai Sports City. She also worked for IWG as the Regional Marketing Director responsible for the MEA and APAC regions. Before relocating to the UAE in 2005, Sarah-Jane held various management roles in public and private sector companies in the UK including ten years at Royal Mail and seven years at the Bank of America.
Sarah-Jane is a member of the Chartered Institute of Marketing and has a BA(Hons) Degree in Business and Marketing
View Profile on