Saudi Arabia Redirects Oil Flow as Yanbu Port Faces Houthi Threats

Satellite imagery reveals an accumulation of tankers capable of holding 14 million barrels at Saudi ports, the highest concentration recorded since June. This pivot arrives as traffic through the Strait of Hormuz continues to dwindle, with daily crossings dropping significantly below recent averages. The disruption stems from the September 11 attack on the East-West pipeline, which slashed capacity by up to 5 million barrels per day. While U.S. Energy Secretary Chris Wright initially signaled a rapid recovery, industry analysts warn that destroyed pump stations could stall full restoration for over six weeks.

The volatility intensified overnight on September 18-19, when Houthi forces targeted Saudi Aramco facilities at Yanbu, the very terminal meant to serve as the kingdom's primary outlet during the current crisis. Although Saudi authorities reported no casualties or structural damage from the intercepted strikes, the vulnerability of the Red Sea route is now acute. To mitigate the risk, Aramco is rerouting roughly 60 million barrels of crude from its Ras Tanura terminal through the Gulf of Oman. Markets reacted to the ongoing instability on Monday morning, with Brent crude sliding 2.82% to $100.90 and WTI dropping 3.11% to $97.18.