Saudi Arabia Shifts Crude Exports to Oman Amid Red Sea Tensions

Saudi Arabia is making significant changes to its crude oil export strategy due to security concerns in the Red Sea. The kingdom is now transferring crude from sea locations off Oman's coast, using ship-to-ship transfers between vessels at anchor points including Sohar in the Gulf of Oman.

This approach mirrors that of neighboring Gulf producers who have adapted to regional instability by relying on alternative pipelines and floating storage. Saudi Aramco is routing its heavier crude grades through this transfer method, keeping export volumes moving without requiring every vessel to pass through the Strait of Hormuz.

The move gives Aramco more flexibility in delivering crude to buyers, as tankers can wait near Oman and deliver cargo without entering the Red Sea. This shift is particularly notable given Saudi Arabia's reliance on its pipeline that carries crude to Yanbu on the Red Sea, which has been disrupted by Yemen's Houthi militants.

The adjustment has been smooth so far, with Middle Eastern producers keeping large volumes of crude flowing and stabilizing markets. As of August 17, 2026, crude settled at $84.97 a barrel, up 0.82% on the day.