Saudi Arabia’s crude oil export routes are being fundamentally restructured as the Houthi group continues to threaten Red Sea shipping lanes.

According to reports, the Yemeni government stated on the 27th that the Houthi group may "follow Iran's example" by taking control of the Bab el-Mandeb Strait, another critical international energy transport corridor in the Middle East. The Yemeni government has "prepared" for a potential escalation of conflict. In response, the Houthi group clarified that the Bab el-Mandeb Strait remains open, but recent maritime blockade measures are "targeted solely at Saudi Arabia." Hours earlier, the Houthis claimed to have launched multiple drones to strike Saudi crude oil transport network infrastructure, retaliating against what they described as "Saudi drone violations of Yemeni airspace."

As security risks escalate, Saudi Arabia is accelerating the activation of backup export routes through Egypt. According to Bloomberg vessel tracking data, at least eight Very Large Crude Carriers (VLCCs) are heading for Egypt's Mediterranean port of Sidi Kerir, with expected arrivals over the next few weeks through mid-August. Simultaneously, Saudi Aramco is increasing crude oil exports via this port and planning to utilize Egypt's Suez-Mediterranean (SUMED) pipeline to connect the Red Sea and Mediterranean transport systems, enhancing export flexibility.

Additionally, Saudi Aramco is exploring new pricing mechanisms for crude oil shipped to Asia via Sidi Kerir port, reflecting the increased transportation costs resulting from the rerouting.

Multiple VLCCs Reroute to Egypt, Korean Fleet Most Active

Among the VLCCs currently heading to Sidi Kerir port, South Korea's Sinokor Group operates five vessels, making it the most prominent operator. Since the outbreak of the Middle East conflict, Sinokor Group has been one of the most active VLCC operators in the Strait of Hormuz.

Route adjustments are also evident among other vessels. The Marshall Islands-flagged VLCC Bidbid is sailing to Sidi Kerir, expected to load crude oil and then proceed to Asia. The tankers VL Bright and Taga have canceled their original routes to the United States and are now diverted to Egypt. Notably, Taga had previously been almost exclusively servicing the Japan route for months.

Red Sea Risk Drives Accelerated Shift of Saudi Crude Export Channels to Egyptian Alternative Route

This adjustment is not merely a change in loading ports but a reconfiguration of Saudi Arabia's crude oil export system.

Under normal circumstances, Saudi crude oil is transported via the domestic east-west pipeline from eastern oil fields to the Red Sea port of Yanbu. From there, tankers carry it to Egypt's Red Sea port of Ain Sokhna, where it enters the Suez-Mediterranean (SUMED) pipeline for delivery to the Mediterranean export hub of Sidi Kerir. After reloading at the port, the oil is shipped to European or Asian markets.

Since the escalation of the Middle East conflict in late February, the importance of the Yanbu port has steadily increased. Saudi Arabia utilizes the east-west pipeline to transport crude oil to the Red Sea port for export, reducing reliance on the Strait of Hormuz route. As the Houthi group continues to threaten shipping in the Bab el-Mandeb Strait, this transport chain linking the Red Sea and the Mediterranean via Egypt is becoming a critical backup route for Saudi Arabia to maintain exports.

However, last week, the Houthi group escalated its actions further. They attacked two Saudi-flagged commercial tankers in the Red Sea, launched strikes on two Saudi Aramco facilities in Yanbu and Jizan, and reiterated that the maritime blockade against Saudi vessels remains in effect. This development has significantly increased Red Sea shipping risks.

According to reports, the Yemeni Houthi group stated on the 26th that they had attacked three Saudi oil tankers in the past 48 hours and continued to enforce a maritime embargo against vessels associated with Saudi Arabia. The Houthi group announced a maritime embargo on Saudi Arabia on the 20th, warning international shipping companies that vessels engaging in trade with Saudi ports could face military strikes.

Vessel data shows that the number of visible tankers at the Yanbu port has already declined significantly. On Tuesday morning, no tankers were observed at the port, indicating that an increasing volume of crude oil is being exported through the Egyptian transport system.