In the days and weeks preceding the Houthi group's announcement of a planned maritime blockade on Saudi Arabia, the kingdom's crude oil exports from its Red Sea terminals reached a historic peak.
During the Iran war, Saudi Arabia played a pivotal role in stabilizing oil prices by rerouting petroleum exports from the Persian Gulf to its western coast for international markets. This capability is now under threat following the Yemeni Houthi faction's declaration of a maritime blockade. Should the blockade be effectively enforced, it could potentially drive crude oil futures prices higher.
Data from tanker tracking shows that in the week ending July 17th, Saudi Arabia exported an average of 5.9 million barrels of crude oil per day through two terminals at the Yanbu port, setting a new record. Over the seven days ending July 20th, the average daily export volume declined to 5.5 million barrels. This data includes crude shipments destined for Jizan, where Saudi Aramco operates a refinery, as well as supplies to power plants along the Red Sea coast.
The Houthi group stated that the blockade is a response to Saudi Arabia's siege of the Yemeni capital, Sana'a, though the organization also maintains ties with Iran. In an email, the Houthis also warned ship owners against calling at Saudi ports.
Despite these threats, vessels continue to sail towards Saudi ports on the Red Sea coast, with at least some Asian buyers still dispatching tankers to load cargo there.
A Saudi-led coalition involved in Yemen announced on Monday that it has initiated operations to safeguard ships in the Bab el-Mandeb Strait, a crucial shipping chokepoint connecting the Indian Ocean and the Red Sea.
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