The United Arab Emirates' new crude oil pipeline project, designed to bypass the Strait of Hormuz, is 50% complete and on track for its 2027 operational start. The Crown Prince Sheikh Khaled bin Mohamed bin Zayed directed state-owned ADNOC to accelerate construction to double export capacity via the port of Fujairah by the target date.
Key Takeaways
The UAE's new crude oil pipeline bypassing the Strait of Hormuz is 50% complete ahead of its 2027 start date. Meanwhile, Iran plans to charge tech companies for using undersea internet cables in the strait and has formed a new authority to manage transit through the critical waterway.
- UAE's new pipeline project is 50% complete and expected to double export capacity by 2027
- Iran proposes charging fees to US tech companies for using undersea internet cables in the Strait of Hormuz
- Iranian authorities form a new body, Persian Gulf Strait Authority (PGSA), to manage transit through the strait
According to Reuters, global oil flows may take at least four months to recover to 80% of pre-conflict levels after the Iran war ends. The Strait of Hormuz has been largely closed to all ships except Iranian vessels since U.S.-Israeli strikes on February 28, causing energy prices and inflation to surge.
Meanwhile, Iran is asserting control over the critical waterway by proposing fees for tech companies using undersea internet cables in the Strait of Hormuz. As reported by Reuters, Iranian state-linked media channels Tasnim and Fars suggested charging US tech giants like Meta, Google, Amazon, and Microsoft license fees for cable usage. This move could disrupt global internet communications, as a significant portion of the world's internet traffic is transmitted via undersea cables that pass through the strait.
The Iranian government has also formed a new body called the Persian Gulf Strait Authority (PGSA) to manage transit through the Strait of Hormuz. According to Al Jazeera, Iran plans to offer insurance for vessels transiting the strait and surrounding waters, with payments settled in cryptocurrency.
The UAE has also faced recent security challenges, including a drone strike on the Barakah nuclear power plant. As reported by Reuters, the attack caused no radiation leak but highlighted the ongoing tensions in the region. The UAE's defense ministry stated that six drones had been launched against it from Iraq in the past 48 hours.
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