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Hormuz Workarounds Keep Gulf Oil Flowing—at a Steep Cost

Ship-to-ship transfers and pipelines bypassing the Strait of Hormuz, where available, have become the primary export route for most Middle Eastern oil. Oil producers in the region have demonstrated what some see as remarkable adaptability to the new circumstances. In fact, it is a matter of survival. And it comes at a cost. This week saw a sharp drop in oil prices on the news that Saudi Arabia had restarted its East-West pipeline. The pipeline was damaged by Houthi strikes last week, and some expected repairs to last months. The effect of the news…