Saudi Arabia Reroutes Oil Exports Amid Ongoing Regional Tensions
Saudi Arabia is navigating a complex logistical situation with its oil exports due to ongoing conflicts in the region. In March 2026, Iran closed the Strait of Hormuz, forcing Saudi Aramco to reroute crude shipments through the East-West pipeline to the Red Sea terminal at Yanbu.
Flows through this route soared to approximately 4.4 MMbpd and peaked near 5 MMbpd by the end of March, with a nominal capacity of 7 MMbpd. However, an interim US-Iran deal in June eased some pressure on the Gulf side, and Yanbu loadings declined to around 2.39 MMbpd.
The situation worsened on July 20, 2026, when Houthi forces declared a maritime embargo on Saudi shipping and launched attacks on vessels transiting the Bab el-Mandeb Strait. In response, Aramco shifted more volume northward, with shipments to Egypt's Ain Sukhna terminal rising roughly 33% to about 1.1 MMbpd.
The SUMED pipeline usage surged to over 1.9 MMbpd in August 2026, a dramatic jump from less than 0.65 MMbpd just two months earlier. This rerouting has added significant time and costs for buyers in Asia, with tankers now navigating around the Cape of Good Hope at Africa's southern tip.