Alternative options, including Red Sea ports, are also threatened, causing a sharp drop in Saudi crude oil exports.

Saudi Arabia's crude oil exports are facing a severe situation of being blocked on two fronts. As the Houthi rebels continue to escalate their blockade of the Red Sea shipping lanes, coupled with another attack in the Strait of Hormuz this week, Saudi Arabia's crude oil exports in August plummeted to their lowest level in at least nine years, further straining the global energy supply chain.

According to an article published on August 19 by Wall Street Insights , Saudi Aramco had previously diverted large quantities of crude oil to the Yanbu port on the Red Sea to bypass the risks of the Strait of Hormuz, with shipments reaching approximately 4 million barrels per day at one point. However, in recent weeks, the Houthi rebels in Yemen announced a maritime blockade against Saudi Arabia, rendering this alternative route ineffective.

According to a Bloomberg report on September 2, tanker tracking data from Vortexa and Kpler showed that Saudi Arabia's observable crude oil exports in August were approximately 3 million barrels per day, the lowest level since records began in early 2017 , consistent with assessments from crude oil traders and an informed source.

Analysts point out that the continued decline in Saudi crude oil exports has not only hit Riyadh's fiscal revenue, but also exacerbated the already strained global supply chain caused by six months of ongoing regional conflict.

According to CCTV News , two oil tankers carrying Saudi crude oil were attacked in the Strait of Hormuz this week. One of them, the "Sidr," belonging to the Saudi national shipping company Bahri, was attacked on August 31. Bahri confirmed that the incident resulted in the deaths of two crew members.

This situation has had a direct impact on global markets. London Brent crude oil prices rebounded above $95 a barrel this week, reaching a new high since the end of July, as market concerns about rising inflationary pressures and the potential risk of interest rate hikes intensified.

With its "alternative route" through the Red Sea blocked, export volumes have declined month by month.

According to reports, after the outbreak of war at the end of February this year and Iran effectively blocked the Strait of Hormuz, Saudi Arabia quickly switched its crude oil exports to the western coast of the Red Sea to bypass the Persian Gulf export route.

This emergency shift proved remarkably effective – according to Bloomberg tracking data, exports from the West Coast port of Yambu surged from approximately 770,000 barrels per day in January to approximately 4.3 million barrels per day in June, effectively mitigating the impact of oil prices and providing a buffer for the global economy to withstand inflationary pressures.

However, the Houthi rebels subsequently announced a blockade of Saudi shipping, and the situation deteriorated rapidly. Exports from Yambb port fell to approximately 3.7 million barrels per day in July, and further declined to approximately 2.25 million barrels per day in August. Meanwhile, exports from the Persian Gulf rebounded slightly to approximately 800,000 barrels per day in July, but then declined again in August. With both shipping routes under pressure simultaneously, Saudi exports found themselves in a predicament of being attacked from both sides.

The ripple effects of the tanker attacks have begun to impact buyer behavior. According to Bloomberg, some Saudi oil customers are hesitant to use Red Sea ports and are unwilling to risk sending ships into the region. This has forced Riyadh to consider alternative routes around Africa—an option that would add thousands of miles to the journey, further increasing transportation costs and lengthening delivery times, creating new disruptions to an already fragile global supply chain.

The attack on the Bahri-owned "Sidr" has drawn particular attention. The company confirmed that the tanker was attacked by projectiles in the Strait of Hormuz on August 31, resulting in the deaths of two crew members. This is one of two Saudi oil tankers attacked in the strait this week, against the backdrop of US strikes against Iranian military targets and Iran's subsequent retaliatory projectile attacks on other Gulf states hosting US troops.

The signs of recovery in the Persian Gulf were short-lived.

While the Red Sea route was blocked, there were brief signs of recovery in the Persian Gulf region.

Satellite images showed four oil tankers loading simultaneously at the Rastanura large oil loading terminal on the Persian Gulf coast last month. Coupled with increased supply from Iraq and Kuwait, and the UAE's successful shipment of goods through the Strait of Hormuz, the market once had expectations for an improvement in the supply side.

However, this recovery momentum came to an abrupt halt this week due to a sudden escalation of regional tensions. Military clashes between the US and Iran reignited market concerns about the safety of passage through the Strait of Hormuz, causing Persian Gulf exports to decline again.

It is worth noting that the final data for August is still a preliminary estimate, and the data may be revised as more "dark ship" transport and related ship-to-ship transfer records are identified.

The energy market's reaction to this situation is already reflected in prices. Brent crude oil has returned above $95 a barrel this week, its highest level since the end of July.

Analysts point out that the continued contraction of Saudi exports and the further escalation of regional conflicts are reinforcing market expectations of tightening supply and reactivating concerns about rising inflationary pressures, which in turn has sparked discussions about major central banks potentially being forced to postpone interest rate cuts or even restart interest rate hikes.

In recent months, the volume of exports that Saudi Arabia maintained through the Red Sea route was a key variable in curbing excessive oil price spikes and providing a buffer for the global economy. Now, as this "alternative" itself is in crisis, the market's fragility is being further exposed .

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