1 Day
Source:
سواليف
Saudi Arabia Reverts to Hormuz for Oil Transport
Saudi Arabia is seeking to reduce its dependence on the Strait of Hormuz for oil exports amid repeated attacks on alternative shipping routes, especially through the Red Sea. Due to threats and attacks, the kingdom relied on exporting oil via the East-West pipeline to the Port of Yanbu, but later had to shift shipments northward through Egypt because of Houthi attacks on Bab el-Mandeb and drone strikes by Iraqi drones that completely disrupted the pipeline. This led to a significant increase in transportation costs, with the cost of shipping oil rising from approximately $4.5 million to about $63 million per trip. Saudi Arabia is moving approximately 2.4 million barrels per day through the Strait of Hormuz, while shipments from Red Sea ports have fallen to zero, reflecting the difficulty in maintaining secure trade routes for oil and an increased reliance on older tankers—despite warnings that building alternative routes may not fully solve the problem.
Size: 120%Text Size
Notice: This Is an AI-Generated Summary
Comments (0)