Red Sea Port Threatened by Houthi Attacks, Saudi Arabia Forced to Reroute Crude Oil Exports Again

Due to the sharply deteriorating security situation at Yanbu port, Saudi Arabia has been forced to activate a dual-track contingency: tankers heading north must either circumnavigate Africa or transit the Suez Canal, with voyage distances exceeding 17,000 miles—more than doubling—while also offering some buyers delivery arrangements in the Gulf of Oman, with loading activity on the Persian Gulf side notably accelerating. Soaring transportation costs are pressuring Asian buyers, with at least one East Asian refiner considering abandoning cargo liftings, yet European refiners have unexpectedly received their full September allocations.