The Oil Market’s Backup Plan Is Breaking Down

For decades, the biggest geopolitical risk hanging over the oil market has been the Strait of Hormuz. Before the conflict in Iran began in late February, roughly one-fifth of the world’s petroleum liquids moved through the narrow waterway separating Iran from Oman, making it the most important oil chokepoint in the world. Now that traffic through Hormuz has been severely disrupted, Gulf producers have increasingly relied on the limited alternatives available to keep oil moving. For Saudi Arabia, the most important of those alternatives is...