MEG offshore sector: resilience in the short term, structural risks on the horizon

The closure of the Strait of Hormuz (SoH) is causing major disruptions to offshore vessel operations in the Middle East Gulf, with up to 15 OSVs having contracts terminated in the UAE, widespread suspensions in Qatar, and newbuild vessels stranded in the Gulf of Oman awaiting access. Insurance costs have surged up to 10x, EPC construction projects are stalling due to inability to import equipment from Asia, and no OSVs are currently able to transit in or out of the Middle East Gulf.