Disruption Of The Strait Of Hormuz Is Reshaping Global Trade... And The "Path Of Development" Is A Strategic Option For Iraq
Reports Economy News – Baghdad A British report highlighted the repercussions of the disruption to maritime traffic through the Strait of Hormuz, particularly energy exports, considering that what is happening is reshaping international trade priorities towards the search for alternative routes, including the Iraqi "Development Road" project.
A report by Amwaj Media stated that the Gulf states’ reliance for decades on a narrow and increasingly tense passage like the Strait of Hormuz was not a new phenomenon, but the scale of the current unrest and the speed of its impact have renewed interest in alternatives that go beyond traditional maritime chokepoints.
In this context, the report considered that the “Development Road,” which aims to link the Gulf to Europe via Iraq and Turkey, is no longer just a national development project, but has become an urgent strategic option within broader efforts to reshape trade and energy routes in a rapidly changing region.
He pointed out that the importance of this project is closely linked to the economic structure of Iraq, which depends on about 90% of its revenues on oil exports, most of which pass through the Strait of Hormuz, making any disruption in this passage a direct threat to the national economy.
Nevertheless, the report stressed that the success of the “Development Road” depends on its ability to integrate with and expand the Iraqi oil pipeline network, emphasizing that geography alone is not enough, but rather requires a stable political and security environment that allows the geographical location to be transformed into an effective corridor for both energy and trade.
He warned against treating the disruption of navigation in the Strait of Hormuz as a passing crisis, considering it a "structural warning" that necessitates a comprehensive reassessment of infrastructure and supply routes, and places land-based projects, foremost among them the "Development Road," at the heart of global strategic thinking.
In the same context, the report explained that the project, in its current form, provides an important logistical connection, but it remains strategically incomplete unless it is integrated with the hydrocarbon transport system, which forms the backbone of global energy demand.
He called for accelerating the development of alternative pipelines, including the Basra-Haditha project, and the connecting lines to the port of Aqaba in Jordan and the port of Banias in Syria, to secure export outlets outside the Gulf and reduce dependence on the Strait of Hormuz.
He also noted efforts to reactivate northern export routes through Türkiye, and discussions about reviving an Iraqi-Saudi pipeline, as part of a broader trend to diversify export geography and reduce geopolitical risks.
Regarding the challenges, the report stressed that the main obstacle lies not in the technical aspects, but in political cohesion, noting that the infrastructure landscape in Iraq still suffers from fragmentation among multiple institutions and internal and external interferences that hinder the building of a unified strategy.
He added that the lack of coordination between transport and energy projects may lead to their development in parallel without integration, which limits their impact and turns them into separate assets instead of an integrated strategic system.
The report noted that developing alternative land routes gives Iraq increasing importance in the calculations of regional and international powers, but at the same time puts it under the microscope of internal challenges, especially with regard to political stability and governance.
He pointed out that land crossings, unlike sea routes which can be secured militarily, depend primarily on the stability of political systems and their ability to provide a safe and stable environment.
In this context, the report suggested that the interests of external parties in the stability of Iraq would increase, but this interest would remain conditional on Baghdad’s ability to provide real guarantees, given the existence of regional alternatives that may bypass Iraq through Jordan and Syria.
The report concluded by noting that the security developments in the Strait of Hormuz represent a rare strategic opportunity for Iraq to reposition itself in the regional system, but that capitalizing on this opportunity requires more than infrastructure projects, but rather political reforms and deep institutional coordination.
He stressed that the future of the "Development Road" will depend on Iraq's ability to transform from a promising geographical location into an effective strategic corridor, warning that failure to achieve this transformation could keep the country on the margins of major transformations despite the opportunities they offer. https://www.economy-news.net/content.php?id=68330