Gulf countries' dependence on oil shipments through the Strait of Hormuz could be significantly reduced by a pipeline linking the Gulf to Europe via Israel, Energy Minister Eli Cohen said, allowing them also to bypass Red Sea shipping disruptions.
Oil prices surged after the US and Israel launched strikes against the Islamic regime in Iran on February 28 and Tehran effectively closed the strait. Prices have dropped since a US-Iran ceasefire, but fears remain that renewed tensions could close the waterway.
"The Gulf countries do not want to be dependent on either Iran or the Houthis (in Yemen) when it comes to their oil exports, which are their primary source of income," Cohen told Reuters in an interview in Jerusalem.
"If you create a land route, you bypass both Iran and the Houthis... The best route is through the State of Israel."
Yemen's Iran-aligned Houthis have frequently attacked shipping in the Red Sea in recent years.
A pipeline through Israel has been mooted in the past, but the idea was never developed due to Middle East tensions.
Saudi Arabia considering expansion of crude oil pipeline
Saudi Arabia is considering expanding the capacity of its crude oil pipeline to the western Red Sea coast, sources close to the matter said, enabling the kingdom and possibly neighbors to transport more oil without crossing the Strait of Hormuz.
Israel, Cohen said, already has existing infrastructure with a pipeline between its Red Sea city of Eilat to the southern Mediterranean port city of Ashkelon, but infrastructure would be needed to connect Arab countries if they were willing.
Cohen said he has suggested to the US a 700-km-long pipeline that could run from Saudi Arabia to Eilat. From there, oil could pass through the Trans Israel Pipeline to Ashkelon, and on to oil tankers to Europe.
Cohen praises US for actions during war with Iran
Cohen praised the US for its actions during the war with Iran, but said Israel may be forced into acting against Tehran alone should Iran advance its nuclear weapons program. He added he hoped for a peace deal with Lebanon. Israel and Iran-backed terrorist group Hezbollah agreed to a ceasefire last month.
Israel on Monday launched a tender to search for more natural gas off its Mediterranean coast. Citing geological data, Cohen believes that oil is also present beneath the gas but that it requires drilling deeper.
He added that alternative energy is a key focus, however, and that at least 30% of electricity production would come mainly from solar by 2030.