Hormuz Tanker Traffic Plummets as Saudi Pipeline Closure Disrupts Flows

Ship-tracking data from Kpler confirms the dramatic reduction in transit volume, though the figures exclude vessels that have deactivated their positioning systems to evade detection. The atmosphere of caution among tanker owners follows a series of strikes on shipping assets and intensified threats from Iran-aligned Houthi forces near the Bab el-Mandeb Strait. With the East-West onshore pipeline to the Red Sea port of Yanbu currently offline, Saudi Arabia has shifted its logistics strategy to maintain exports.

The Kingdom is now offloading millions of barrels of crude onto the spot market for collection near offshore Oman, effectively bypassing the Persian Gulf transit entirely. By facilitating ship-to-ship transfers in the Gulf of Oman, Saudi officials are sparing buyers the risk of navigating the Strait of Hormuz. While traffic has partially recovered from earlier wartime lows, these tactical shifts suggest that the chokepoint remains a site of significant economic uncertainty for global oil markets.