How Iran plans to bypass the Strait of Hormuz with its new pipeline

An Iranian flag near an oil platform at Soroush in the Persian Gulf.

REUTERS / Raheb Homavandi

Text by: Siavosh Ghazi

4 min

Iran has built a 1,000-kilometer pipeline and a new oil terminal in the Oma Sea to export its oil bypassing the Strait of Hormuz, which is the strategic crossing point for oil exports from the Persian Gulf countries.

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With our correspondent in Tehran,

Iran's

objective

is to be able to export part of its oil from the Jask oil terminal in the Arabian Sea, and thus bypass

the Strait of Hormuz.

Much of the oil exported from the Middle East to countries in Asia, Europe and North America passes through this Strait of Hormuz, which connects the Persian Gulf to the Arabian Sea.

It is a very sensitive area

and where many foreign warships patrol, especially American ones.

In recent months, there have been several serious incidents in this region between American ships and Revolutionary Guard patrols.

And the two countries have been

on the brink of war

at least twice since June 2019.

Initially, Iran will therefore be able to export 350,000 barrels of oil from the Jask terminal.

But by March 2022, this volume will increase to one million barrels.

Tehran will gain time to export its oil and at the same time will no longer depend on the only Kharg terminal which is located in the Persian Gulf.

Bypass US sanctions

Hit by US sanctions that prevent it from exporting its oil, Iran also hopes that the construction of this pipeline and the oil terminal will change something.

Before the imposition of US sanctions in 2018, Iran exported two and a half million barrels of oil per day.

But bypassing the Strait of Hormuz, it will be easier for Tehran to bypass US sanctions as well.

Because Iran is a big oil country and has many deposits.

Proven oil reserves rank the country fourth in the world with around 200 billion barrels.

It is therefore a strategic industry for Tehran.

In June, Iran produced two and a half million barrels of oil, according to OPEC.

But for now, the country's oil exports are limited to less than a million barrels a day because of US sanctions, but Iran's oil minister has said Iran could triple its exports if sanctions are lifted.

Oil, an argument for international negotiations

Can Iran return to the level of its exports before the US sanctions?

Since last April, Iran has been engaged in negotiations in Vienna with the great powers, that is to say France, Great Britain, Germany, Russia and China and indirectly the United States for revive the 2015 nuclear agreement. An agreement that will allow the lifting of American sanctions and the limitation of Tehran's nuclear program.

These negotiations have made significant progress but are for the moment suspended pending the assumption of office of the new conservative Iranian president Ebrahim Raissi.

They could therefore resume in September.

And there is no doubt that Iran will return to the oil market and will take advantage of the new terminal to export its oil more easily.

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