Houthi forces "block" the Red Sea, Saudi crude oil forced to be exported via Egypt.

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The Houthi armed group continues to threaten Red Sea shipping, and Saudi Arabia's crude oil export routes are facing passive restructuring.

According to Xinhua News Agency, the Yemeni government said on the 27th that the Houthi armed group may "imitate Iran" and control the Bab-el-Mandeb, another international energy transport route in the Middle East. The Yemeni government has already "prepared" for a possible escalation of conflict. The Houthi side stated that "Bab-el-Mandeb has not been closed; the recently announced maritime blockade measures target only Saudi Arabia." A few hours ago, the Houthis said they launched multiple drones to strike infrastructure in Saudi Arabia’s crude oil transport network, in response to "Saudi drones violating Yemeni airspace."

Amid rising security risks, Saudi Arabia is accelerating the use of an alternative route to export crude oil via Egypt. According to Bloomberg ship tracking data, at least 8 Very Large Crude Carriers (VLCCs) are sailing toward the Egyptian Mediterranean port of Sidi Kerir, with expected arrivals over the next few weeks through mid-August. Meanwhile, Saudi Aramco is increasing crude oil exports through the port and plans to leverage Egypt’s Suez-Mediterranean (SUMED) pipeline, connecting the Red Sea and Mediterranean transport system to enhance export flexibility.

In addition, Saudi Aramco is also studying a new pricing mechanism for crude oil shipped to Asia via Sidi Kerir, to reflect increased transportation costs due to rerouting.

Multiple VLCCs Diverted to Egypt, South Korean Fleet Most Active

Among the VLCCs headed for Sidi Kerir port, five belong to South Korea’s Sinokor Group, making up the majority. Since the outbreak of the Middle East conflict, the company has been one of the most active VLCC operators in the Strait of Hormuz.

The route adjustments of other ships are also evident. The VLCC Bidbid, flying the Marshall Islands flag, is sailing toward Sidi Kerir, and is expected to load crude oil and head to Asia; VL Bright and Taga, two tankers, have canceled their planned US routes and diverted to Egypt, with Taga having mostly operated on routes to Japan for the past several months.

Red Sea Risks Rising, Saudi Crude Oil Export Routes Accelerate Shift to Egypt Alternative

This adjustment is not simply a change of loading port, but a reconfiguration of Saudi Arabia’s crude oil export system.

Under normal circumstances, Saudi crude is first transported through domestic east-west pipelines from eastern oil fields to the Red Sea port of Yanbu, then by tanker to the Egyptian Red Sea port Ain Sokhna, then enters the Suez-Mediterranean (SUMED) pipeline, is transported to the Mediterranean export hub at Sidi Kerir, and is reloaded there to Europe or Asian markets.

Since the Middle East conflict escalated in late February, the importance of the Yanbu port has continued to rise. Saudi Arabia uses the east-west pipeline to move crude oil to Red Sea ports for export, reducing reliance on routes through the Strait of Hormuz. As the Houthis continue to threaten shipping in Bab-el-Mandeb, this Egypt-linked transport chain connecting the Red Sea and the Mediterranean is becoming an important backup route for Saudi exports.

However, last week the Houthis further escalated their actions—not only attacking two Saudi-flagged commercial tankers in the Red Sea, but also targeting Saudi Aramco facilities in Yanbu and Jizan, and reaffirming the validity of the maritime blockade against Saudi ships, further raising risks in Red Sea shipping.

According to Xinhua News Agency, on the 26th, the Yemeni Houthi armed group claimed to have attacked three Saudi oil tankers in the past 48 hours and continued maritime embargo measures against vessels associated with Saudi Arabia. On the 20th, the Yemeni Houthis announced a maritime embargo on Saudi Arabia, warning international shipping companies that vessels trading with Saudi ports may face military strikes.

Ship data shows that the number of tankers visible at Yanbu port has dropped significantly; as of Tuesday morning, no tankers were observed berthing in the port area, indicating that more crude oil is being exported through the Egyptian transport system.

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