(MENAFN- Arab Times) Need to look for alternative ways in order to avoid dangerous consequences: experts
KUWAIT CITY, July 8: Analysts have pointed out that Iran's threat to prevent the passage of oil shipments through Strait of Hormuz if America pushes ahead with its plan to stop all countries from buying Iranian oil will leave a dark shadow on Gulf countries in general and Kuwait in particular, reports Al-Rai daily.
They said Kuwait will be hardest hit by the closure of Hormuz Strait as it is the only way for Kuwaiti oil export — around two million barrels per day. They warned that if Iran closes the strait, it will prevent oil shipment of about 10 to 15 million barrels per day and this is considered a real catastrophe. They stressed it is more dangerous if the small oil reserve of Kuwait abroad (four billion barrels) is taken into consideration.
They were quick to add though that Iran will most likely not act on its threat as it could affect the entire world and lead to unprecedented oil price hike — about $300 per barrel. They emphasized the need for Kuwait to look for alternative ways in order to avoid the dangerous consequences, but the available alternatives are very limited and difficult to apply.
They cited one solution – exporting Kuwaiti oil through Oman using pipelines or Saudi Arabia to be transported through the Red Sea. They added the negative consequences will not be limited to Gulf countries as America, Russia, Asian and European countries will be affected as well, indicating these countries will not allow the closure of Hormuz Strait.
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