Red Sea Instability Exposes Flaws in Saudi's Petroline Oil Export Plan

Security risks in the Red Sea are exposing vulnerabilities in alternative oil export routes that were previously considered a safer option for crude shipments. The Strait of Hormuz, which connects the Middle East to global markets via the Gulf of Oman, has been a major concern due to tensions between Iran and the US.

The Saudi Arabia's East-West Pipeline, also known as Petroline, was seen as a partial solution to this problem by connecting production centers in the east with the port of Yanbu on its western coast. However, shipments beyond Yanbu remain dependent on maritime transport, which is now facing increased security risks in the Red Sea.

The Bab el-Mandeb strait, located at the southern entrance of the Red Sea, has become a chokepoint for oil exports to Asia. Attacks by Yemen's Houthis have raised concerns about the safety of commercial vessels passing through this region.

According to commodities data firm Kpler, the number of commodity vessels passing through Bab el-Mandeb fell to 11 on July 26, the lowest daily level in recent months.