Aramco, Saudi Arabia’s state oil company, is taking steps to reroute some of its oil exports through the Red Sea in an effort to bypass the Strait of Hormuz amidst escalating tensions with Iran.
The company aims to redirect its crude shipments to avoid potential Iranian attacks, which have significantly slowed shipping in the region, reported Reuters.
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Since the US and Israel began conducting military operations against Iran last week, Saudi Arabia, along with neighbouring Gulf oil producers including the United Arab Emirates (UAE), Kuwait and Iraq, have struggled to navigate the Strait of Hormuz.
Hundreds of vessels are currently stationed on either side as a precautionary measure due to Iran’s threats to attack any ship attempting to pass through this critical waterway.
Consequently, global oil prices have risen, with Brent crude futures increasing by 12% this week.
In response to storage limitations and the risk of having to reduce output, Aramco plans to utilise the Red Sea port of Yanbu to load some of its Arab Light crude shipments.
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By GlobalDataAccording to three sources cited by the news agency, Aramco has informed certain buyers about this new arrangement.
The UAE also has an alternative route via the Habshan-Fujairah Pipeline, which bypasses the Strait and delivers up to 1.5 million barrels per day from Abu Dhabi’s fields to the port of Fujairah on the Gulf of Oman.
Meanwhile, US President Donald Trump has announced naval protection for ships in the Middle East, if required, and proposed offering risk insurance at competitive rates for shipping companies operating in the area.
President Trump, in a post on X, said: “Effective IMMEDIATELY, I have ordered the United States Development Finance Corporation (DFC) to provide, at a very reasonable price, political risk insurance and guarantees for the Financial Security of ALL Maritime Trade… If necessary, the United States Navy will begin escorting tankers through the Strait of Hormuz, as soon as possible.”
He also said that “the US will ensure the FREE FLOW of ENERGY to the WORLD”.
In related maritime incidents, a Russian-flagged liquefied natural gas tanker, the Arctic Metagaz, caught fire in the Mediterranean, reported Reuters.
Maritime security sources suggested Ukraine might be involved through a naval drone attack but provided no evidence for these claims.
Malta’s armed forces reported locating the tanker’s crew safe in a lifeboat within Libya’s search-and-rescue zone.
