Hormuz Tanker Traffic Slumps as Saudi Arabia Scrambles for New Oil Routes

The Strait of Hormuz experienced a decline in tanker traffic as Saudi Arabia sought alternative oil routes, following the shutdown of its pipeline to the Red Sea port of Yanbu. Only four vessels were detected moving in or out of the Strait on Thursday, a significant drop from the 10-day average of up to 16 ships daily. The trend reflects growing concerns over the security of shipping through the Strait, with recent hostilities and threats from Iran-aligned groups in the Red Sea.

While tanker traffic at Hormuz has partially recovered to around half to two-thirds of pre-war levels, it still remains below these levels. Saudi Arabia has turned to selling oil in the spot market, with buyers picking up cargoes off the coast of Oman to bypass the Strait entirely. This shift highlights the strategic importance of Hormuz and the challenges faced by oil exporters in navigating a more unpredictable and volatile shipping environment.