Strait of Hormuz Closure Exacerbates Saudi Oil Export Crisis

Saudi Arabia's oil export capacity is facing unprecedented strain due to disruptions along major maritime routes and a key crude pipeline. The country's eastern ports, including Ras Tanura, have been affected by the closure of the Strait of Hormuz since late February.

The western route through the Bab el Mandeb strait has become increasingly difficult to use following a blockade declared by the Houthis and their recent seizure of the port of Mokha. This has forced ships to take a longer route around Africa's Cape of Good Hope, adding 20-25 days to transit times and substantially increasing shipping costs.

The shutdown of the East-West Pipeline, which carried 7 million barrels of crude per day, is another major blow to Saudi Arabia's oil export capacity. The pipeline was shut down as a precautionary measure after pumping stations near Riyadh and Madinah were hit by drones launched from Iraq's Maysan province.

The disruptions have put pressure on global oil markets, with crude prices trading above $105 a barrel after reaching $110 a barrel on Monday. Freight rates from the Gulf of Oman to China have also risen to a record $11.50 a barrel following the pipeline attack.