Oil Market Shock: Saudi Arabia Bypasses Hormuz with Record Red Sea Exports

Saudi Arabia has sharply accelerated crude oil exports through its terminal in Yanbu on the Red Sea, with projected shipment volumes expected to reach a record 3.8 million barrels per day as Riyadh moves to protect its export revenues from potential disruptions in the Strait of Hormuz. Yanbu Becomes Key Export Hub as Risks Rise in the Gulf The East-West pipeline, which connects oil fields in Saudi Arabia's Eastern Province to Yanbu on the Red Sea coast, has a nominal capacity of approximately 5 million barrels per day. This infrastructure gives the kingdom significant flexibility to redirect additional volumes away from the Persian Gulf. The strategic logic is clear: with Iran openly threatening energy infrastructure in the Gulf and the risk of disruptions in the Strait of Hormuz reaching its highest level in decades, Saudi Arabia cannot afford to rely on a single chokepoint for its entire export business.