Israel is advancing a plan to establish an overland energy corridor linking Gulf states to Eilat, with the goal of bypassing both the Strait of Hormuz and the Bab el-Mandeb Strait amid renewed fighting between the United States and Iran and continued volatility in global energy markets. Maariv reports that the initiative is being promoted by Israel’s Energy Ministry.

The project calls for the construction of alternative oil pipelines from Gulf countries to Eilat. It is expected to include the government-owned Europe Asia Pipeline Company (EAPC), together with private developers. Officials believe the infrastructure would reduce dependence on the two strategic maritime chokepoints and weaken Iran’s ability to pressure global energy markets.

A senior Energy Ministry official said, “The Strait of Hormuz and the Bab el-Mandeb Strait are the past. We are looking toward the future with the goal of permanently bypassing the straits and their impact on oil prices. The Iranians will miss their ability to pressure energy prices.”

The article notes that oil prices had previously fallen to around $65 per barrel after earlier tensions eased, but have climbed again over the past two weeks following the renewed confrontation between the United States and Iran. Despite the increase, prices have remained below $80 per barrel, with officials believing the current conflict has had a more limited impact on energy markets than previous rounds of fighting.

Israel continues to benefit from its domestic natural gas reserves. The Energy Ministry, headed by Energy Minister Eli Cohen, announced this week that state revenue from natural resource royalties totaled NIS 1.98 billion, while cumulative royalty collections since 2004, excluding taxes and levies, have reached NIS 17 billion. The ministry expects royalty revenue to reach at least NIS 2.5 billion in 2026.

The ministry also recently launched another offshore oil and gas exploration tender. ExxonMobil is expected to participate together with the Greek energy company Energean, while Chevron is investing an additional $2.5 billion in the continued development of the Leviathan natural gas field.

Despite Israel’s growing energy independence, gasoline prices remain high. A liter of gasoline currently costs NIS 7.48 and is expected to rise by approximately 10 agorot on August 1 due to higher global fuel prices and the strengthening of the U.S. dollar against the shekel.

(YWN World Headquarters – NYC)