Saudi Arabia has shifted oil exports between the Persian Gulf and Red Sea as the US-Iran war disrupts shipping through the Strait of Hormuz and Bab al-Mandeb.
At its peak, Saudi Arabia’s Red Sea port of Yanbu exported around 4.5 million barrels of crude daily. About three million barrels passed through Bab al-Mandeb, Richard Bronze, co-founder of Energy Aspects, told CNN.
However, Bronze said those flows fell sharply after the Houthi threat intensified during the summer. Meanwhile, United Kingdom Maritime Trade Operations (UKMTO) recorded 12 vessel attacks in its latest weekly overview.
Ten occurred in Hormuz, with one each in the Persian Gulf and the Gulf of Oman. The agency warned that many targeted vessels do not report incidents, limiting its ability to establish the full toll.
US military-assisted tanker shuttles have provided Saudi exporters with another route through Hormuz. Some vessels turn off their tracking transponders before transferring oil to ships in the Gulf of Oman.
Saudi Arabia increased its use of that route after drones launched from Iraq struck its East-West pipeline in September. US President Donald Trump suggested Iran was probably responsible. Iran’s foreign ministry denied the accusation.
Read: Iran Changes Hormuz Ship Attacks to Sway US Vote: Officials
The pipeline carries crude towards Saudi Arabia’s Red Sea ports. Johannes Rauball, a senior crude analyst at Kpler, warned that wider Houthi threats against ships from other countries could further tighten oil supplies.
Read: Bab al-Mandeb Cleared of Houthis, Saudi Envoy Claims
Bruegel senior fellow Georg Zachmann said importing countries increasingly recognise the need to “structurally reduce their oil consumption” to limit their exposure to external shocks.
Read: Oil Prices Rise 2%; Brent Reaches $106.76 After Saudi Attacks
Asian buyers have already cut consumption, while China has reduced imports by drawing on strategic reserves. Saudi Arabia has shifted oil exports between Gulf and Red Sea routes as attacks and threats disrupt both corridors.
