RIYADH, September 22 — Saudi Arabia has notified Asian refiners that they will soon be able to lift crude from Red Sea terminals, according to people familiar with the matter, a shift that would let the kingdom route exports around the Strait of Hormuz. The notification was reported by Bloomberg News. Saudi Aramco and the Saudi energy ministry did not immediately comment.
The Strait of Hormuz is the narrow waterway between the Persian Gulf and the Gulf of Oman. Roughly one-fifth of global oil consumption passes through it.
At its narrowest point the strait spans about 21 miles (33 kilometers), and the shipping lanes in each direction are only about 2 miles (3 kilometers) wide.
The Pipeline Behind the Offer
Saudi Arabia has long maintained the East-West Pipeline, also known as the Petroline. The 746-mile (1,200-kilometer) link carries crude from the Eastern Province oil fields to the Red Sea port of Yanbu, with a stated capacity of about 5 million barrels per day. It was built in the early 1980s and expanded in the late 1980s, and has historically run below capacity.
That gap between pipeline capacity and export volume is the constraint. Saudi Aramco, the state oil company and the world’s largest crude exporter, ships roughly 6 million to 7 million barrels per day, most of it to Asia.
The pipeline can carry about 5 million barrels per day, meaning not all volumes could be redirected. Asian buyers include refiners in China, India, Japan, and South Korea, which together account for a large share of Saudi crude exports.
A Second Chokepoint
The Red Sea route carries its own risk. Tankers using it would transit the Bab el-Mandeb Strait, where Houthi attacks on shipping have disrupted traffic since late 2023. Those attacks have forced many tankers and container ships to reroute around the Cape of Good Hope, adding thousands of miles to voyages.
The Red Sea connects to the Mediterranean via the Suez Canal, which handles about 12 percent of global trade. So the kingdom faces Hormuz risk on one side and Red Sea risk on the other.
The Red Sea option would add shipping time and cost for Asian refiners compared with direct Gulf loadings, but it would reduce their exposure to a potential Hormuz closure. The announcement signals Saudi Arabia’s intent to give its customers supply-chain flexibility. It follows previous instances in which Saudi officials have said the kingdom could redirect exports if the Strait of Hormuz were closed.
Why the Infrastructure Matters
The vulnerability is not theoretical. In 2019, attacks on Saudi Aramco facilities at Abqaiq and Khurais temporarily knocked out about 5.7 million barrels per day of production — more than half of the kingdom’s output. Iran has repeatedly threatened to close the strait in response to sanctions.
The US Fifth Fleet, based in Bahrain, patrols the region, and Washington has called for freedom of navigation and increased its naval presence there. Saudi oil policy is directed by its energy minister, Prince Abdulaziz bin Salman, a son of King Salman.
The kingdom is a leading member of OPEC and the broader OPEC+ alliance, which includes Russia, and has been cutting production since 2022 in coordination with OPEC+ to support prices. The move is likely to be welcomed by Asian refiners seeking supply security, and it gives Saudi Arabia more leverage in its relationship with Iran and other regional players. The story is developing; further details are expected.
