Saudi Arabia has been forced to reroute its crude oil shipments from its Red Sea terminal at Yanbu to alternative routes due to escalating regional tensions. In March 2026, Iran effectively closed the Strait of Hormuz, through which over 6 million barrels per day of Saudi crude had historically flowed, forcing Saudi Aramco to shift toward the East-West pipeline to Yanbu. On July 20, 2026, Houthi forces declared a maritime embargo on Saudi shipping and launched attacks on vessels transiting the Bab el-Mandeb Strait, prompting another redirection of flows toward Egypt’s Ain Sukhna terminal. The SUMED pipeline’s usage surged to over 1.9 million barrels per day in August 2026, up from under 0.65 million just two months earlier, approaching operational limits. Saudi Arabia produces roughly one in ten barrels of crude consumed worldwide, and Asian buyers now face detours adding over 30 days to delivery schedules via the Cape of Good Hope.
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