Bloomberg: Israel may have options to overcome an oil embargo by Muslim countries

Iran has called on Muslim countries to impose an oil embargo on Israel. The Jewish state, however, would have plenty of options on the global market to overcome such a measure, Bloomberg reported. The impact would depend on how Kazakhstan and Azerbaijan responded to the embargo. A more pressing issue for oil imports is the condition of ports during the conflict.

Since mid-May, Israel has imported approximately 220.000 barrels of oil per day. About 60 percent of it comes from the two Muslim-majority countries mentioned above, according to data from analytics firm Kpler. Other major suppliers include West African producers, particularly Gabon. Middle Eastern producers account for a very small share of Israel’s oil supplies, and Iran supplies no oil to the country.

If Muslim countries imposed a complete embargo, Israel would have enough alternative supplies, Bloomberg reported. The United States, Israel’s key ally, is among the leading suppliers of seaborne oil this year. Oil exports from Brazil, which has supplied Israel in recent months, are also rising rapidly.

A more urgent issue for Israel is securing its oil ports and nearby waters so it can import oil safely. The country has three oil import terminals: Ashkelon and Haifa on the Mediterranean Sea, and Eilat on the Red Sea.

The most important of these terminals is Ashkelon, which handles about 180.000 barrels per day. It is located near the Gaza Strip and was closed shortly after Hamas’s attack on Israel on 7 October. No oil has been imported through the terminal at Eilat on the Red Sea since 2020, according to Kpler data. Flows to Haifa averaged about 40.000 barrels per day.