Saudi Red Sea Crude Exports Crash 41% Amid Houthi Threats

Saudi Arabia's crude exports from its Red Sea terminal have plummeted by 41% since their peak in March, according to data from Wood Mackenzie. The terminal, located at Yanbu, has been a key transit point for Saudi oil shipments after the country redirected most of its exports away from the Strait of Hormuz following the Iran war.

The data shows that Yanbu loadings fell to around 2.39 million barrels per day (bpd) in June, down from a peak of 4.07 million bpd in March. This decline represents a significant reduction, given that Saudi exports through both Gulf and Red Sea terminals had fallen by as much as 66% since January.

Analyst Ian Solis noted that the market had treated Yanbu as a solution to Hormuz risk but pointed out its own chokepoint - the Bab al-Mandeb Strait. He warned that if this strait comes under sustained disruption from a declared Houthi naval blockade, Asia stands to lose a major crude supply artery.

Just this week, the Iran-aligned Houthis appeared to make good on their pledge to target Saudi Arabia's oil exports from the Red Sea and Bab el-Mandeb Strait. Two Saudi tankers were reportedly struck in the latest escalation of the Middle East war, with the Houthi group claiming that the vessels had violated a naval blockade declared earlier this week.