Saudi Oil Exports at Risk as Houthis Threaten Red Sea Blockade

Rystad Energy has issued a warning that 2.5 million barrels per day of Saudi Arabian crude exports are at risk due to Houthi forces' threat to impose a naval blockade in the Red Sea.

This comes on top of the already severely reduced traffic through the Strait of Hormuz, which is effectively closed.

Jorge Leon, Rystad's senior vice president and head of geopolitical analysis, said that Saudi Arabia had heavily relied on the Red Sea route to compensate for the near-paralysis of Hormuz, making it a significant vulnerability.

A disruption at Bab el-Mandeb would not only affect Saudi shipments but also eliminate one of the few remaining routes capable of compensating for reduced Hormuz traffic.