Saudi Arabia Bypassed Hormuz With a Red Sea Oil Route, Now Houthis Threaten It Too

Saudi Arabia turned to its Red Sea coast to keep millions of barrels of oil flowing around the Strait of Hormuz. Now, Houthi advances in Yemen are putting pressure on the alternative route just as global oil markets struggle with disrupted Gulf shipping.

The kingdom has ramped up its 1,200-kilometre East-West Pipeline, which carries crude from eastern Saudi Arabia to the Red Sea port of Yanbu without passing through Hormuz.

Aramco says the pipeline has a capacity of 7 million barrels per day, including roughly 2 million barrels per day delivered to refineries, making it a critical alternative route when Gulf shipping is constrained.

But getting crude to Yanbu solves only part of the problem.

Saudi Oil Found a Way Around Hormuz

The East-West Pipeline gives Saudi Arabia something few Gulf producers possess: an overland route capable of moving large volumes of crude away from the Persian Gulf.

At Yanbu, the oil can be loaded onto tankers for international markets.

That option has become increasingly important as shipping through Hormuz has been sharply disrupted, reducing the reliability of the Gulf route for energy exports.

Saudi Arabia's western infrastructure therefore acts as a strategic pressure valve, allowing crude to reach the Red Sea without first passing through the strait.

Houthis Move Towards Bab el-Mandeb

The new concern lies farther south.

Houthi forces seized the Yemeni port city of Mocha on 10 September and advanced along the Red Sea coast, increasing their leverage near the Bab el-Mandeb Strait.

The narrow waterway connects the Red Sea with the Gulf of Aden and is one of the world's most important maritime chokepoints for energy and trade. For Saudi tankers leaving Yanbu for Asian markets, Bab el-Mandeb provides the direct route towards the Indian Ocean.

The Houthis have said international navigation remains safe while maintaining that Saudi vessels are subject to their announced naval restrictions.

That does not mean Saudi Red Sea exports have stopped. Shipping continues through the strait, but the Houthi advance has increased the strategic risk surrounding the route.

Saudi Infrastructure Faces Additional Pressure

The maritime concern comes alongside attacks on Saudi territory.

Saudi authorities have reported Houthi missile and drone attacks targeting areas including Jazan, Abha, Khamis Mushait and Najran, while official statements have accused the group of striking civilian and economic assets. The UK Government has also warned of renewed Houthi attacks on Saudi infrastructure, including oil infrastructure and shipping.

Saudi officials have pledged to protect the kingdom's territory, infrastructure and national assets.

Those attacks add another layer of risk to an energy system already under pressure from disruption around Hormuz.

Oil Markets Confront Two Chokepoints

The consequences are being watched far beyond Saudi Arabia.

Brent crude reached a four-month high of $109.97 (£81.47) a barrel on 11 September as markets assessed restricted flows through Hormuz and growing concern over the Houthi advance near Red Sea shipping routes.

Saudi Arabia's pipeline has not lost its strategic value. It still allows crude to reach the Red Sea without passing through Hormuz, while Europe-bound cargoes retain northern options through the Suez route.

The vulnerability comes after the oil reaches the coast.

For Asian-bound shipments travelling south, Saudi Arabia's solution to the Hormuz problem still leads towards Bab el-Mandeb. That leaves the kingdom with a powerful overland escape from one chokepoint while facing rising uncertainty around another.