Persistent threats from Houthi rebels against Red Sea shipping are compelling Saudi Arabia to once again overhaul its global crude export network, a situation that is compounding challenges for the already strained international energy supply chain.

According to CCTV International News, Yemen's Houthi forces issued a statement on August 5th claiming that, since announcing a maritime shipping ban against Saudi Arabia on July 22nd, they have attacked a total of 8 Saudi oil tankers; an additional 29 Saudi vessels have been forced to alter their routes or turn back. The statement further noted that as the Houthis intensify their naval blockade of the Bab el-Mandeb Strait, Saudi authorities have begun rerouting tanker traffic toward the northern Red Sea.

Since the Strait of Hormuz was closed, the Saudi western port of Yanbu has served as a critical backup channel for global crude supply. However, according to Bloomberg reports, following the Houthi announcement of a blockade on Saudi ports in July, the security situation at Yanbu has deteriorated sharply, with numerous tankers now taking the long route around Africa or diverting northward through the Suez Canal, extending voyages up to 17,000 miles — more than double the normal distance. Meanwhile, Saudi Arabia has started offering some buyers delivery arrangements in the Gulf of Oman, just outside the Strait of Hormuz, while loading operations on the Persian Gulf side have also notably accelerated.

These logistical adjustments have significantly driven up crude delivery costs and triggered ripple effects among Asian buyers: at least one East Asian refiner is reportedly considering forgoing next month's Saudi crude cargo due to the additional expenses, while several Asian refiners have rejected requests from Saudi Aramco to pick up cargoes at Yanbu, instead demanding loading at Egypt's Mediterranean port of Sidi Kerir. In contrast, European refiners have emerged as unexpected beneficiaries, with multiple companies securing their full September allocations of Saudi crude.

Yanbu Port Under Siege as Houthi Threats Escalate

At the heart of this logistics crisis lies the persistent threat posed by the Houthis to the Bab el-Mandeb Strait — the narrow waterway forming the southern exit of the Red Sea.

According to reports, after the Houthis announced their blockade of Saudi ports in July, tankers that had been loading crude at Yanbu largely diverted, choosing to head north through the Suez Canal to Egypt's Mediterranean port of Sidi Kerir, from where they would continue their journeys toward Asia or other destinations. For vessels bound for Asia, this means a full circumnavigation of Africa, covering more than 17,000 miles — over double the normal route length.

However, this alternative route itself presents significant bottlenecks. The Suez Canal's draft restrictions prevent fully laden Very Large Crude Carriers (VLCCs) from transiting; while the Sumed Pipeline across Egypt can serve as a supplementary option, its capacity is insufficient to handle the full volume of Saudi crude that Asian markets normally require, creating a dual logistical constraint.

Ship tracking data compiled by Bloomberg shows that over the past month, vessels owned by South Korea's Sinokor Group, Greece's Dynacom Tankers Management Ltd., and Norway's DHT Management AS have been frequently spotted shuttling crude between Yanbu and Ain Sukhna, the southern entry point of the Sumed Pipeline. Additionally, six Saudi empty VLCCs, after bypassing the Bab el-Mandeb Strait at the end of last month, have taken the route around Africa's west coast and are heading toward the western entrance of the Mediterranean.

Persian Gulf Operations Accelerate, Gulf of Oman Emerges as New Delivery Point

While the western corridor faces disruption, Saudi Arabia is quietly activating another contingency arrangement — shifting a portion of its crude delivery points to the Gulf of Oman, in the waters just outside the Strait of Hormuz.

Satellite imagery and vessel tracking data reveal that a large number of Saudi tankers are gathering in the Gulf of Oman awaiting instructions, while loading activity at Saudi ports on the Persian Gulf side has also increased noticeably. This suggests that Saudi Arabia may be arranging for crude to depart from Persian Gulf ports and be transshipped through the strait near Oman or the UAE to open-water delivery points.

This model has previously served as a vital lifeline for the UAE and other Gulf producers, and South Korea's Sinokor has again emerged as a key player. According to Bloomberg data, since August 11th, of the four VLCCs that have transported approximately 8 million barrels of crude from Saudi Persian Gulf ports, three belong to the Sinokor fleet.

Asian Buyers Under Pressure, European Refiners Unexpectedly Gain

The rising costs stemming from this logistical restructuring are creating a clear divergence among Asian buyers.

According to traders, for the crucial Asian market, Saudi Arabia's overall crude allocations remain far below pre-war levels from the Iran conflict era, and total Saudi exports continue to trail pre-conflict benchmarks. The elevated transportation costs are prompting some buyers to reassess their procurement plans — at least one East Asian refiner is considering abandoning its next-month Saudi crude liftings due to the additional expenses.

However, energy security considerations are partially tempering cost concerns. Traders indicate that Japanese and South Korean refiners have essentially confirmed they will lift Saudi crude at Sidi Kerir next month, prioritizing energy security over cost pressures.

In contrast to the difficulties faced by Asian buyers, European refiners have unexpectedly gained an advantage in this logistical shake-up. Over the past week, multiple European refiners have received full confirmation of their September Saudi crude allocations, dispelling earlier concerns raised by a roughly one-week delay in the nomination process.