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Saturday, Mar 07, 2026

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Saudi Aramco Reroutes Oil to Red Sea as Strait of Hormuz Disruptions Hit Gulf Exports

World’s largest oil exporter increases shipments from Yanbu to bypass threatened shipping lanes in the Persian Gulf
Saudi Arabia’s state oil giant Saudi Aramco has increased crude shipments from its Red Sea export terminal as disruptions in the Strait of Hormuz severely constrain oil exports from the Persian Gulf.

The shift comes as shipping activity through the narrow waterway—one of the most critical arteries for global energy trade—has slowed dramatically amid escalating regional tensions and security risks.

With tankers unable or unwilling to transit the strait safely, Saudi Arabia has moved to redirect part of its crude exports through the Red Sea port of Yanbu, which lies outside the conflict-affected Gulf shipping corridor.

Saudi Aramco has begun asking some international buyers to load cargoes at Yanbu rather than at traditional Gulf export terminals.

The adjustment allows shipments to bypass the Strait of Hormuz entirely, reducing exposure to the security risks and logistical bottlenecks that have emerged as maritime traffic in the area has sharply declined.

The company is using its East-West Pipeline network to transport crude from oil fields in eastern Saudi Arabia across the country to the Red Sea coast.

This pipeline system can move roughly five million barrels per day, providing a crucial alternative route for exports.

However, the diversion is not capable of fully compensating for the disruption to Gulf shipping lanes.

Much of Saudi Arabia’s crude normally flows through terminals connected to the Persian Gulf, and analysts note that the pipeline’s capacity remains limited relative to the country’s overall export volumes.

In recent months the kingdom has exported more than seven million barrels of crude oil per day, meaning that alternative routes can only partially offset the loss of Hormuz access.

The Strait of Hormuz has long been one of the world’s most strategically important energy chokepoints, carrying a significant share of globally traded oil.

The recent escalation in Middle Eastern conflict has effectively halted large portions of commercial traffic through the passage, leaving hundreds of vessels waiting nearby and pushing shipping costs and insurance premiums sharply higher.

Saudi Arabia’s decision to expand Red Sea shipments reflects both the resilience and limitations of regional energy infrastructure.

By activating its cross-country pipeline network and shifting export flows westward, the kingdom is attempting to maintain supply to international markets while avoiding one of the most volatile maritime corridors in the world.

Energy analysts warn that if disruptions to the Strait of Hormuz persist, the consequences could reverberate across global energy markets, tightening supply chains and placing further upward pressure on oil prices and transportation costs worldwide.
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