Saudi Arabia Offers Red Sea Oil Route Amid Strait of Hormuz Disruption Risks

Saudi Arabia is offering long-term oil customers the option to receive part of their April supply through the Red Sea port of Yanbu, as a precaution against potential disruptions in the Strait of Hormuz amid ongoing Middle East tensions. However, the Yanbu route has limited capacity, restricting the volume of crude that can be shipped. Buyers can alternatively choose deliveries via the Persian Gulf but face risks if the strait remains closed. Major importers like China and Japan are adjusting their strategies amid this uncertainty.