Since the outbreak of war in late February and the effective closure of the Strait of Hormuz by Iran, Saudi Arabia has rapidly redirected much of its oil exports to the western coast via the Red Sea. The volume transported through the Yanbu port surged from 770,000 barrels per day in January to 4.3 million in June.
However, in July, shipments dropped to 3.7 million barrels per day following the announcement of a blockade on Saudi shipping by Houthi forces. By August, exports fell further to approximately 2.25 million barrels per day.
Saudi vessels have faced attacks from Houthis in the Red Sea, with two more tankers targeted this week in the Strait of Hormuz.
As a result of these attacks, many buyers have begun to avoid Saudi ports in the Red Sea, prompting Riyadh to consider longer shipping routes around Africa, stretching thousands of kilometers beyond traditional paths.
Context
- Saudi Arabia is the second-largest oil producer in the world after the United States, accounting for about 10% of the global oil market.
