Saudi Oil Shipments Plummet Amid Red Sea and Bab el-Mandeb Disruptions

Saudi Arabia's oil shipments have reached their lowest level since the Iran war in 2026, with exports averaging just 3.23 million barrels per day in the first 23 days of August.

The kingdom had been relying on its East-West Pipeline to move crude from eastern oilfields to Yanbu on the Red Sea, but flows through the pipeline have surged to around 4.4 million bpd, nearing 5 million bpd by the end of March.

However, this workaround has exposed Riyadh to another vulnerability: the Red Sea and the Bab el-Mandeb. The Houthis warned last month that they could target shipping linked to Saudi Arabia, prompting exporters to reduce reliance on Yanbu.

In response, Saudi Arabia is moving crude in multiple directions at once, through Gulf terminals, Yanbu, and alternative routes, depending on which corridor is safest and available.