Amid escalating tensions between Israel and Hezbollah, concerns are rising about the potential impact on Israel’s oil supply security. Industry sources highlight the strategic significance of Israeli oil ports, particularly in the context of the ongoing conflicts in the region. Israel, traditionally reliant on the southern port of Ashkelon near Gaza, has increasingly turned to alternative crude oil ports due to security concerns. This includes the northern port of Haifa and Eilat in the south on the Red Sea. However, these alternatives are not without risks; the Red Sea route, for instance, faces threats of missile attacks from Yemen’s Houthis. A significant escalation in tensions was observed with Israel launching numerous air strikes over southern Lebanon’s Suluki Valley, marking one of the most intense bombardments since border hostilities intensified in early October.
The United States is actively pursuing diplomatic efforts to prevent further escalation into a broader conflict. Despite Hezbollah’s initial rejection of proposals to reduce hostilities, senior officials from the group have indicated openness to U.S. diplomatic interventions. In response to missile attacks following the conflict with the Palestinian militant group Hamas in Gaza, Israel had temporarily closed the Ashkelon port. It was reopened in early November under heightened security measures, allowing access to crude, products, and LPG tankers. The ongoing threat from aerial attacks remains a concern, particularly following recent strikes in Tel Aviv and central Israel.
Israel’s oil refineries, including the Haifa refinery operated by Oil Refineries Ltd. (a subsidiary of Bazan Group) and the Ashdod refinery (formerly part of the Paz conglomerate), have adapted operations to these increased security risks. These refineries, primarily processing imported crude oil, rely on terminals at Haifa, Ashkelon, and Eilat. Despite the challenges, Israel received oil supplies from various countries, including Azerbaijan, Gabon, Brazil, Nigeria, the US, and Kazakhstan, between November and January. The operations of Israel’s Europe Asia Pipeline Co. (EAPC), which manages the Ashkelon and Eilat oil terminals, are also affected by the ongoing conflict. The EAPC’s 257-kilometer Eilat-Ashkelon crude oil pipeline, offering a capacity of 1.2 million b/d, serves as an alternative to Egypt’s Suez Canal.
However, the Houthi threat at the Bab al-Mandeb strait continues to pose risks to Red Sea tanker and container traffic. In response to these risks, some oil majors have rerouted tankers around the Cape of Good Hope, while others continue to navigate through the Red Sea. North of the risk zone, Saudi Aramco has maintained crude flow from Yanbu to Egypt’s Ain Sokhna and through the Sumed pipe to the Mediterranean coast, ensuring supply to the European market.
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#IsraelOilSupply #MiddleEastConflict #Hezbollah #AshkelonPort #HaifaPort #EilatPort #OilSupplySecurity #RedSeaRoute #EAPC #HaifaRefinery #AshdodRefinery #BazanGroup #HouthiThreat #BabAlMandeb #SaudiAramco #SumedPipeline #USDiplomacy #EnergySecurity #GlobalOilRoutes #MiddleEastTensions
Amid escalating tensions between Israel and Hezbollah, concerns are rising about the potential impact on Israel’s oil supply security. Industry sources highlight the strategic significance of Israeli oil ports, particularly in the context of the ongoing conflicts in the region. Israel, traditionally reliant on the southern port of Ashkelon near Gaza, has increasingly turned to alternative crude oil ports due to security concerns. This includes the northern port of Haifa and Eilat in the south on the Red Sea. However, these alternatives are not without risks; the Red Sea route, for instance, faces threats of missile attacks from Yemen’s Houthis. A significant escalation in tensions was observed with Israel launching numerous air strikes over southern Lebanon’s Suluki Valley, marking one of the most intense bombardments since border hostilities intensified in early October.
The United States is actively pursuing diplomatic efforts to prevent further escalation into a broader conflict. Despite Hezbollah’s initial rejection of proposals to reduce hostilities, senior officials from the group have indicated openness to U.S. diplomatic interventions. In response to missile attacks following the conflict with the Palestinian militant group Hamas in Gaza, Israel had temporarily closed the Ashkelon port. It was reopened in early November under heightened security measures, allowing access to crude, products, and LPG tankers. The ongoing threat from aerial attacks remains a concern, particularly following recent strikes in Tel Aviv and central Israel.
Israel’s oil refineries, including the Haifa refinery operated by Oil Refineries Ltd. (a subsidiary of Bazan Group) and the Ashdod refinery (formerly part of the Paz conglomerate), have adapted operations to these increased security risks. These refineries, primarily processing imported crude oil, rely on terminals at Haifa, Ashkelon, and Eilat. Despite the challenges, Israel received oil supplies from various countries, including Azerbaijan, Gabon, Brazil, Nigeria, the US, and Kazakhstan, between November and January. The operations of Israel’s Europe Asia Pipeline Co. (EAPC), which manages the Ashkelon and Eilat oil terminals, are also affected by the ongoing conflict. The EAPC’s 257-kilometer Eilat-Ashkelon crude oil pipeline, offering a capacity of 1.2 million b/d, serves as an alternative to Egypt’s Suez Canal.
However, the Houthi threat at the Bab al-Mandeb strait continues to pose risks to Red Sea tanker and container traffic. In response to these risks, some oil majors have rerouted tankers around the Cape of Good Hope, while others continue to navigate through the Red Sea. North of the risk zone, Saudi Aramco has maintained crude flow from Yanbu to Egypt’s Ain Sokhna and through the Sumed pipe to the Mediterranean coast, ensuring supply to the European market.
Stay informed with supply chain news on The Supply Chain Report. Learn more about international trade at ADAMftd.com.
#IsraelOilSupply #MiddleEastConflict #Hezbollah #AshkelonPort #HaifaPort #EilatPort #OilSupplySecurity #RedSeaRoute #EAPC #HaifaRefinery #AshdodRefinery #BazanGroup #HouthiThreat #BabAlMandeb #SaudiAramco #SumedPipeline #USDiplomacy #EnergySecurity #GlobalOilRoutes #MiddleEastTensions
