The escalating conflict between the US and Iran is increasing risks for logistics in the Middle East. Amid threats of further shipping restrictions through the Strait of Hormuz, the United Arab Emirates is preparing to build a new port that will partially bypass one of the region's most crucial maritime routes.
The trigger for these measures is a new round of confrontation. The US Central Command (CENTCOM) has carried out strikes for the third consecutive night on six Iranian coastal cities in response to a shipping blockade. In retaliation, Tehran struck US bases in Kuwait and Jordan.
Global markets reacted with rising oil prices: Brent crude climbed to a July high of over $84 per barrel.
One factor accelerating the UAE's plans was a missile attack in Omani waters on two UAE tankers, Mombasa and Al Bahiyah. According to the UAE Ministry of Defense, the vessels were hit by Iranian cruise missiles. One Indian sailor was killed, and eight crew members—citizens of India and Ukraine—were injured.
Due to the effective restriction of traffic through the Strait of Hormuz, shipping traffic has dropped from 135 to 40 vessels per day, and activity at one of the region's largest port hubs, Jebel Ali in Dubai, has decreased by 90–95%. Rating agency Moody's forecasts a drop in profit for port operator DP World to $5.9 billion.
US President Donald Trump has announced plans to charge fees for escorting commercial vessels through the Strait of Hormuz.
To reduce dependence on the key maritime route, DP World is investing hundreds of millions of dollars in building a new major port in the emirate of Fujairah on the coast of the Gulf of Oman. The project is expected to be completed in about a year and a half. Cargo will be routed to the new port bypassing the Strait of Hormuz, then delivered by truck to Dubai and Abu Dhabi.
Meanwhile, Gulftainer is investing about $2 billion in expanding the nearby port of Khor Fakkan. UAE authorities say they do not plan to reduce the role of Jebel Ali, but the eastern coast should become an additional logistics and strategic direction.
Source: podrobno.uz