Drone Strike in Egypt Heightens Security Concerns Over Suez Oil Exports

A drone strike in Egyptian waters has caused security concerns about the Suez Canal and its related pipeline, which is a vital export route for Saudi Arabian oil.

Saudi Arabia had previously rerouted most of its oil to the Red Sea after the Iran war began, but Houthi threats and attacks have stopped many tankers using that route. A growing volume of Saudi oil has been heading north up the Red Sea towards Suez and the Sumed pipeline instead.

According to data from Kpler, crude loadings from the pipeline rose to 28.79 million barrels in July from 19.52 million in April before the Houthis' threat. The Suez Canal Authority did not immediately respond to requests for comment.