Saudi oil logistics roiled again by Houthis’ Red Sea threat
Saudi Arabia's costly workarounds illustrate the ongoing trade friction imposed by a war that's expanded more widely, and dragged on far longer, than initially thought.
Saudi Arabia finds itself once more compelled to restructure its oil logistics as the Houthis in Yemen continue to pose a threat to the Red Sea route. The world's top oil exporter is now sending tankers on a lengthy journey around Africa to bypass the vulnerable strait. Millions of barrels of Saudi crude are being routed north across the Red Sea, effectively avoiding the perilous stretch near Yemen.
China has also been granted access to Middle East shipments for collection just outside the Persian Gulf. The kingdom's ability to shift crude exports to its west-coast facilities has been instrumental in preventing a spike in oil prices and protecting economies from an inflation surge, as Iran has effectively closed the Strait of Hormuz.
With Yanbu now under threat from the Iran-backed Houthis, Saudi Arabia and its customers must now devise new strategies to ensure the smooth flow of oil to global markets.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
