Overview
- In March 2026 Saudi Aramco shifted large volumes onto its East‑West pipeline to send Gulf crude to Yanbu on the Red Sea after risks at the Strait of Hormuz constrained Gulf shipping routes.
- In July 2026 Houthi forces declared a maritime embargo on Saudi-linked shipping and began attacks near the Bab el‑Mandeb, cutting throughput through the Red Sea corridor and prompting more rerouting.
- By August 2026 flows through Egypt’s SUMED route to Ain Sukhna rose sharply to about 1.9 million barrels per day, bringing the system close to its operational limits and leaving little room for more diversions.
- Saudi combined exports fell to a 2026 low in early August, tankers are increasingly detouring around the Cape of Good Hope which adds more than 30 days to voyages, and higher voyage times are pushing up freight and fuel costs for buyers in Asia.
- The squeeze is testing Saudi redundancy, pressuring global crude availability, and is already spurring plans and investment talks for new pipelines and port capacity that could reshape regional export routes over the coming years.