Saudi Oil Exports Rerouted Amid Red Sea Conflict

Saudi Arabia's oil exports are being rerouted due to escalating conflicts in the Red Sea region, which have threatened traditional shipping lanes. The kingdom has shifted crude shipments from its Yanbu terminal towards alternative terminals and pipelines.

In March 2026, Iran effectively closed the Strait of Hormuz, forcing Saudi Aramco to pivot and increase exports through the East-West pipeline to Yanbu. Flows through this route soared to approximately 4.4 MMbpd and peaked near 5 MMbpd by the end of March.

However, an interim US-Iran deal later eased some pressure on the Gulf side, causing Yanbu loadings to decline to around 2.39 MMbpd by June as some shipments resumed through traditional Gulf routes via Ras Tanura.

A new front opened in July when Houthi forces declared a maritime embargo on Saudi shipping and began launching attacks on vessels transiting the Bab el-Mandeb Strait, causing crude flows to drop sharply.

Aramco responded by shifting more volume northward through the SUMED pipeline, which saw usage surge to over 1.9 MMbpd in August, near operational limits that could constrain further rerouting.