Saudi Arabia has sharply increased crude shipments from its Red Sea terminals, tripling export volumes from its western coast as the conflict involving Iran disrupts tanker movements through the strategic Strait of Hormuz.
Tanker-tracking data compiled by Bloomberg shows that five very large crude carriers (VLCCs) loaded roughly 10 million barrels of oil at the Red Sea port of Yanbu Port during the first four days of March.
The surge has pushed average Red Sea shipments to around 2.5 million barrels per day (bpd) so far this month, up sharply from 786,000 bpd in February, as Riyadh moves to maintain global supply flows.
While oil continues to be loaded at the kingdom’s main Gulf export hub, Ras Tanura Oil Terminal, the regional conflict has prevented tankers from leaving the Gulf at the usual pace, forcing producers to reroute exports.
The disruption threatens a large share of the Middle East’s oil, fuel and natural gas shipments, given the strategic importance of the Strait of Hormuz, through which roughly one-fifth of the world’s oil trade typically passes.
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Saudi Arabia has been able to partially offset the bottleneck by transporting crude from its eastern oil fields to Red Sea terminals via an extensive cross-country pipeline system.
State oil giant Saudi Aramco said it is redirecting export volumes through the network linking eastern production centres to the Red Sea coast. The pipeline system theoretically has the capacity to carry most of the kingdom’s daily crude exports of about 7 million bpd.
However, the Red Sea route carries its own risks, particularly for shipments heading to Asian markets.
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Tankers departing Yanbu must still pass through the narrow Bab el‑Mandeb Strait, a strategic maritime chokepoint between the Red Sea and the Gulf of Aden.
Shipping in the area has been repeatedly threatened by attacks from Iran-backed Houthi movement militants in Yemen, who only recently paused a campaign of drone and missile strikes targeting commercial vessels.
Analysts warn that if the Strait of Hormuz remains blocked, other major oil producers in the region may soon face severe export constraints.
Iraq, the region’s second-largest oil producer, has already begun cutting output after tanker shortages forced a halt at some of its largest fields.
Market analysts at JPMorgan warned that other Gulf producers, including Kuwait, could encounter similar problems within two weeks if empty tankers cannot enter the Gulf to load cargoes.
Regional producers are therefore scrambling to find alternative export routes.
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The United Arab Emirates has increased shipments through the port of Port of Fujairah, located outside the Strait of Hormuz on the Gulf of Oman.
Crude transported through the Fujairah pipeline currently exceeds 1 million bpd, although the system’s maximum capacity of 1.5 million bpd remains well below the UAE’s full export programme.
Meanwhile, Egypt has signalled its willingness to help facilitate regional oil transport using the SUMED Pipeline, which connects the Red Sea with the Mediterranean Sea.
Egyptian Petroleum Minister Karim Badawi said the pipeline could be used to move crude shipments arriving from the Red Sea coast to global markets via Mediterranean terminals.
The disruption has also tightened global energy markets.
Storage facilities across the Gulf region are approaching capacity as producers struggle to ship crude abroad. Without access to export routes, companies may be forced to slow production to avoid overwhelming domestic storage.
Oil prices have already reacted strongly to the turmoil.
Benchmark Brent crude futures have risen about 16 percent since the end of last week, climbing above US$80 per barrel for the first time in more than a year.
European natural gas markets have also experienced sharp volatility after QatarEnergy reduced production and declared force majeure at its main liquefied natural gas facility following attacks that disrupted operations.
Energy analysts say the longer the disruption continues, the greater the pressure on global oil and gas markets, with shipping bottlenecks and regional security risks threatening supplies from one of the world’s most critical energy corridors.
