Saudi Arabia’s Oil Export Network Faces Pressure On Two Fronts

Saudi Arabia’s ability to move crude to international markets is facing a new test as Houthi control expands along Yemen’s Red Sea coast, even as attacks attributed by Riyadh to Iraqi militias have disrupted the kingdom’s East-West Pipeline.

The distinction is important. Saudi Arabia has not blamed the Houthis for the pipeline attacks. The kingdom shut the East-West Pipeline as a precaution after multiple attacks, while Reuters reported that Riyadh attributed them to Iraqi militias.

Separately, Houthi control of parts of Yemen’s Red Sea coast and Mayun Island is increasing security concerns around maritime routes in the region.

The result is pressure on two separate parts of Saudi Arabia’s oil-export network.

East-West Pipeline

The East-West Pipeline, also known as Petroline, carries crude from Saudi Arabia’s oil-producing east to Yanbu on the Red Sea coast.

Saudi Aramco describes it as a critical supply artery and said it had reached a capacity of around 7 million barrels per day, supporting exports and refining operations on the kingdom’s western coast. The route gives Saudi Arabia an alternative to moving crude through the Gulf and Strait of Hormuz.

Saudi Arabia shut the pipeline as a precaution following the attacks. Reuters reported that some September-loading cargoes of Saudi crude bound for European buyers were cancelled and Yanbu loadings suspended.

Why The Red Sea Matters

The Houthi advance creates a separate vulnerability.

The group has seized positions along Yemen’s Red Sea coast, including the port city of Mocha, as well as Mayun Island in the Bab el-Mandeb Strait. These positions bring Houthi-controlled territory closer to the strategic maritime chokepoint.

Bab el-Mandeb connects the Red Sea with the Gulf of Aden and the wider Indian Ocean, making it an important route for commercial shipping between Europe, the Middle East and Asia.

The Houthis do not have to shut the strait to disrupt shipping. The International Maritime Organisation has warned that attacks in the Red Sea have already affected commercial traffic and forced vessels to take longer routes around the Cape of Good Hope.

Why Saudi Cannot Easily Switch

Saudi Arabia has invested in alternative routes partly to reduce its exposure to disruptions around Hormuz.

The East-West Pipeline allows crude to reach Yanbu and other western facilities without first travelling through the Strait of Hormuz. Aramco has described the route as an important part of the kingdom’s ability to respond to disruptions affecting Gulf shipping.

But that redundancy depends on both infrastructure and the routes beyond it remaining secure.

With the pipeline disrupted, Saudi Arabia has fewer options for moving crude towards its western export terminals. At the same time, Houthi control along Yemen’s Red Sea coast and Mayun Island is adding security risks around a maritime route that has already faced repeated attacks.

This does not mean the Houthis control Bab el-Mandeb or can automatically stop tankers from using it. Their leverage comes from being able to threaten an important route.