Saudi Arabia Cancels Oil Shipments Amid Yemen Conflict
Saudi Arabia has informed at least two European oil refining customers that they will not receive crude oil allocations in October due to the ongoing war in Yemen. The kingdom's East-West Pipeline and Red Sea port of Yanbu were attacked by drones, disrupting Saudi Arabia's ability to export oil through this route. The pipeline, which runs from the Gulf to the Red Sea port of Yanbu, allowed Saudi Arabia to bypass Iran and the US's tussle for control of the Strait of Hormuz.
The price of Brent crude has risen since the Houthis launched an offensive in Yemen, putting them in control of the country's Red Sea coastline. At the same time, they have targeted Saudi Arabia with drones and missiles, as the kingdom launches strikes on their territory. The price for refined products, like diesel and jet fuel, is even higher.
Saudi Arabia began rerouting its oil shipments through the Suez Mediterranean Pipeline after the Houthis declared an embargo against the kingdom's shipping. However, the kingdom has maintained an air and sea blockade against Houthi ports and airports, which the group says they want lifted in order to end their embargo on Saudi Arabia.