By: Rana Farooq Ashraf
Published By:ANI News Agency
For decades, oil has been much more than a source of energy. It has been a foundation of industrial power, a pillar of national security and, increasingly, an instrument of geopolitical influence. The latest developments involving Venezuela, Iran, Russia, Saudi Arabia and the major maritime routes of the Middle East suggest that the global oil market is entering a new and highly contested phase.
The United States has taken a significant strategic position in Venezuela’s oil sector. President Donald Trump has said that the United States has secured majority control over more than 65 billion barrels of Venezuela’s proven oil reserves through a partnership involving private companies. The arrangement is intended to revive Venezuela’s oil industry and increase crude supplies to the United States, although questions remain over its legal structure, investment requirements and long-term implementation.
The significance of Venezuela goes far beyond its immediate relationship with Washington. The country possesses one of the world’s largest proven oil reserves, much of it concentrated in the Orinoco Belt. Reuters has also reported that ExxonMobil is advancing discussions about returning to Venezuela’s oil-rich Orinoco region, while other international companies are expanding their presence.
At the same time, the Middle East has demonstrated how vulnerable the global energy system remains to disruption. The Strait of Hormuz and the Bab el-Mandeb Strait are among the most important maritime chokepoints for international energy trade. Recent fighting has sharply reduced shipping through the Strait of Hormuz, while the advance of Iran-aligned Houthi forces along Yemen’s Red Sea coast has increased the risks surrounding the Bab el-Mandeb route.
Saudi Arabia has faced a particularly serious challenge. Its East-West oil pipeline, which provides an alternative route for transporting crude away from the Gulf, was temporarily shut following a drone attack. Reuters reported that the pipeline normally carries around four to five million barrels of oil per day, while disruptions at Saudi Arabia’s Red Sea export facilities have raised concerns about a possible reduction in global supplies.
It is important, however, not to confuse these developments with evidence that Washington has established control over the Houthis. Available reporting describes the Houthis as an Iran-aligned movement and shows that their recent escalation has directly threatened Saudi interests. In fact, Saudi Arabia has sought assistance from both Washington and Beijing as it confronts the changing security environment around the Red Sea and Bab el-Mandeb.
Iran represents another major part of this emerging energy contest. American pressure on Tehran has increasingly extended beyond conventional sanctions toward the broader question of who is permitted to buy Iranian energy and under what conditions. The objective is not simply to reduce Iranian oil revenues; it also affects the choices available to countries seeking affordable energy in an increasingly fragmented global market.
Russia presents a similar challenge. On September 16, the U.S. House of Representatives passed legislation that would give the president authority to impose tariffs of up to 100 percent on countries purchasing Russian oil and gas. The measure has particular significance for major energy consumers such as India and China. The legislation still requires the next stages of the U.S. legislative and executive process before such tariffs would actually take effect.
This is where the real transformation of the global energy system can be seen. The struggle is no longer simply about who produces the most oil. It is increasingly about who controls access to markets, shipping routes, financial channels, investment and technology. A country may possess enormous reserves, but its ability to convert those reserves into economic and political power depends on whether it can sell them, transport them and receive payment without facing prohibitive external pressure.
For countries such as Pakistan, this transformation carries serious consequences. Pakistan remains highly sensitive to international energy prices, shipping costs and disruptions in global supply. Any prolonged instability around Hormuz or Bab el-Mandeb, or any major change in the availability of Russian, Iranian or Gulf oil, can affect the import bill, inflation, currency stability and industrial costs.
Therefore, saying that the United States has completely taken control of global oil supplies would be an overstatement. Russia, Saudi Arabia, Iran, Iraq, the United Arab Emirates, Venezuela and other producers continue to possess enormous resources and influence. What is changing, however, is the ability of major powers to influence the routes, markets, financing and commercial conditions through which those resources reach consumers.
The future of oil politics may consequently be determined less by the size of an oilfield and more by the network surrounding it. Pipelines, ports, shipping lanes, sanctions, tariffs, investment agreements and financial systems are becoming as important as the crude beneath the ground.
The global energy contest is therefore entering a new era—one in which oil is not merely a commodity but an instrument through which economic interests, national security and international power are increasingly connected.
