Oil Producers, Buyers Looking at Long-Term Alternatives to Hormuz, Says Clara Gillispie

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Oil producers and buyers are exploring long-term alternatives to the Strait of Hormuz as a critical route may be closed or operate at reduced capacity in the future. This strategic shift involves seeking alternative routes and reducing insurance risks associated with this key oil transit chokepoint.

Clara Gillispie, senior fellow for climate and energy at the Council on Foreign Relations, said that both oil producers and buyers are now considering the possibility that the Strait of Hormuz will remain closed or operating at a reduced capacity a year in the future. Gillispie said that as countries look for workarounds to the Strait, they are looking both alternative routes and ways to decrease their insurance risk exposure. (Source: Bloomberg)