Saudi Oil Shipments Disrupted by Houthi Blockade

Tanker traffic at Saudi Arabia's main Red Sea oil terminal in Yanbu has plummeted by over a third since Yemen's Houthis announced a blockade of Saudi vessels through the Bab al-Mandeb strait on July 20, according to Lloyd's List Intelligence.

The blockade has forced Aramco to rely on a complex three-part operation to ship crude oil: shuttle tankers carry it from Yanbu to Egypt's Ain Sukhna, the SUMED pipeline pipes it across to Egypt's Mediterranean port of Sidi Kerir, and vessels reload there for onward delivery.

This detour keeps Saudi crude flowing but requires more tankers and adds weeks to voyages for Asian buyers. The route is a costly workaround that has significant implications for global oil markets.