Secret Israeli-Iranian oil pipeline emerges as critical solution for Saudi Arabia's Red Sea shipping vulnerabilities.
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Houthi attacks on Saudi oil infrastructure threaten Kingdom's primary export routes through Red Sea. Secret Eilat-Ashkelon pipeline built in 1960s offers alternative crude transport route to European markets. Israel Energy Minister publicly proposes 700-kilometer Saudi Arabia pipeline extension to Washington in July. |
A succession of assaults by Iranian-aligned Houthi militants on Saudi Arabia's crucial oil infrastructure has revealed some weaknesses in the country's oil export system, leading energy policymakers and government leaders to look into unique methods to deal with these challenges. The militant group claimed recent strikes on Saudi Aramco infrastructure at Jazan and Yanbu, while Saudi Arabia reported intercepting various drones attacking petroleum facilities.
This issue has driven up shipping costs and delayed shipment periods through the Red Sea, as commercial ships face increasing navigational dangers in this area. Saudi Aramco had to stop its 400,000 barrel per day Jazan Refinery on July 27 due to the Houthi assault on its Integrated Gasification Combined Cycle complex and tank farm. The repairs will take until mid-August.
Even the East-West Pipeline project, meant to bypass the Strait of Hormuz by sending the oil from Saudi Arabia's eastern province to Yanbu on the Red Sea, cannot solve this problem. Once the oil reaches Yanbu, tankers will still have to travel through the Bab el-Mandeb Strait, which is similarly endangered by Houthi forces.
Based on recently declassified CIA documents, the American intelligence recognized the importance of this project as much as to include it in the President's Daily Brief. Initially the capacity of the pipeline was estimated around 20 million tons per year, but eventually, its capacity increased up to 50-60 million tons per year by the mid-1970s. After the Islamic Revolution in Iran, Israel took control of the project unilaterally after diplomatic relations between them were severed, although a Swiss arbitration tribunal demanded Israel to pay Iran $1.1 billion regarding their joint venture.
Now, Israeli Energy Minister Eli Cohen officially proposed a 700-kilometre Saudi Arabia oil pipeline extension to Washington in early July, which is the most practical plan suggested by the Israeli government since their 2020 agreement with the UAE, which was unsuccessful.
The prospect represents a remarkable geopolitical reversal. Only years ago, such collaboration would have been politically inconceivable amid regional tensions. However, prolonged shipping disruptions are forcing governments to reassess previously immovable assumptions. Oil market pressures continue reshaping Middle Eastern diplomatic undertakings in unprecedented ways.
Business Honor views that strategic energy cooperation between Saudi Arabia and Israel reflects shifting regional security priorities.
FAQs
What is the Eilat-Ashkelon Pipeline?
A 254-kilometre secret pipeline built in 1960s connecting Israel's Red Sea and Mediterranean ports.
When was the pipeline originally constructed?
The pipeline was built in late 1960s as secret Israeli-Iranian partnership under Shah Mohammad Reza Pahlavi.
Why does Saudi Arabia need this pipeline?
Houthi attacks on Red Sea infrastructure threaten Saudi Arabia's primary crude oil export routes to Europe.
Who controls the pipeline currently?
Israel assumed complete control after Iran's Islamic Revolution and subsequent diplomatic relations collapse.
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