Saudi crude oil exports are now confined to the 'bottleneck' of the Suez Canal, pushing the global energy supply chain to its limits

智通财经2026/07/26 02:06

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Since the outbreak of the Iran war, Saudi Arabia has successfully bypassed the de facto blockade of the Strait of Hormuz by Iran by shifting its crude oil export focus to Yanbu port on the Red Sea coast, transporting oil to Asian customers via the Bab el-Mandeb Strait. However, with the Houthis' recent continued attacks on Saudi oil tankers in the Red Sea, this alternative route is rapidly losing its reliability.
According to vessel tracking agency Vortexa, this week at least four oil tankers fully loaded with Saudi crude oil made emergency course changes before reaching the southern end of the Red Sea and the entrance to the Bab el-Mandeb Strait, instead turning north toward the Suez Canal. At the same time, Saudi Arabia has begun to increase the crude oil shipment quota at Egyptian Mediterranean ports. In the first three weeks of July, the volume of seaborne crude oil transported through the Suez Canal reached the highest level in two and a half years, and the supporting SUMED pipeline saw a 50% month-on-month increase in crude oil transmission.
The Suez Canal route also faces significant security challenges. According to informed sources, senior officials of Iran's Revolutionary Guard Corps recently issued warnings: if the United States intensifies military strikes against Iran or plans a ground invasion, Iran will completely blockade the Bab el-Mandeb Strait and the Red Sea channel, and carry out targeted attacks on passing commercial ships. This means the world's two most important oil shipping routes—the Strait of Hormuz and the Bab el-Mandeb Strait—could be cut off simultaneously.
Saudi Arabia is now being forced to reroute oil exports along much longer and more costly routes—either via the Suez Canal or around the southern tip of Africa. This route not only significantly increases transit time and costs, but the Suez Canal itself also faces capacity constraints. If this channel is also blocked, the global crude oil supply chain will face its most severe test in decades.
The multilateral mediation efforts of Saudi Arabia, Egypt, and other countries have still failed to persuade Iran and its allied Houthis to cease their actions. As the conflict continues to escalate, the security of global energy supply is becoming increasingly fragile.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Saudi crude oil exports are now confined to the 'bottleneck' of the Suez Canal, pushing the global energy supply chain to its limits

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