Saudi Arabia reroutes oil exports amid Red Sea shipping threats

Saudi Arabia is in the middle of a logistical chess game with its oil exports, and the board keeps changing. The kingdom has been forced to reroute crude shipments away from its Red Sea port at Yanbu toward alternative terminals and pipelines as escalating conflicts in the region threaten to choke off traditional shipping lanes. From Hormuz to Yanbu to everywhere else The trouble started when Iran effectively closed the Strait of Hormuz following heightened tensions with the US and Israel in March 2026. That waterway had historically carried over 6 million barrels per day (MMbpd) of Saudi crude. Saudi Aramco pivoted quickly, ramping up exports through the East-West pipeline to its Red Sea terminal at Yanbu. Flows through that route soared to approximately 4.4 MMbpd and peaked near 5 MMbpd by the end of March. The pipeline, with a nominal capacity of 7 MMbpd, became the kingdom’s lifeline overnight. An interim US-Iran deal later eased some of the pressure on the Gulf side. By June, Yanbu loadings had declined to around 2.39 MMbpd as some shipments resumed through traditional Gulf routes via Ras Tanura. A second front opens On July 20, 2026, Houthi forces declared a maritime embargo ...