Saudi Arabia’s Aramco Reroutes Crude Oil Shipments Through Red Sea Port Of Yanbu
Saudi Arabian State-Owned oil company Aramco is rerouting some of its crude oil shipments to the Red Sea port of Yanbu, as the situation in the Strait of Hormuz has become dangerous due to the US-Iran war.
The company has told buyers of its light crude to load cargoes at Yanbu Port.
Saudi Arabia exported 7.2 million barrels daily in February 2026, of which 6.38 million barrels went through the Strait of Hormuz.
Additionally, the country’s East-West pipeline can pump oil from the eastern oilfields to the Red Sea and can transport 5 million barrels per day.
However, it is unclear if Yanbu has the capacity to load that amount of crude, which the pipeline can carry onto ships.
“There are logistical trade-offs involved, including … what rate the Yanbu crude terminal on the Red Sea can sustainably load vessels at,” said Richard Bronze, co-founder of the consultancy.
There is a concern that the pipeline could also become a target for Iran and its allies.
Apart from Saudi Arabia, other regional oil producers such as the UAE, Iraq, and Kuwait are also unable to ship oil through the Hormuz Strait, leading to ships anchoring on either side of the strategic waterway, per reports.
As they cannot export their oil, the affected countries are forced to cut down daily production as their storage tanks are now filled to the brim. Iraq has cut output by 1.5 million barrels daily.
Per recent media reports, the tanker rates to load from Yanbu have more than doubled.
The United Arab Emirates also has a pipeline to transport some crude and bypass the Strait.
Known as the Habshan-Fujairah Pipeline, it has a capacity of 1.5 million bpd and transports oil from Abu Dhabi’s fields to the port of Fujairah on the Gulf of Oman, feeding its storage terminals and refineries.
Fujairah was also attacked, and operations at the port slowed on Tuesday after air defences intercepted a drone, causing a fire.
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