The regime in Iran is forcing countries to find workarounds that will diminish the importance of Hormuz.
“The surge in exports from Yanbu (a port on Saudi Arabia’s Red Sea coast) has now offset ~45% of lost Persian Gulf shipments this month.”
Saudi Arabia is rerouting oil supply away from the blocked Strait of Hormuz at a record pace:
Crude oil shipments from Yanbu, a port on Saudi Arabia’s Red Sea coast, are up to ~5 million barrels per day, DOUBLING in just 2 weeks.
This comes as the 746-mile East-West pipeline is now operating at full capacity of ~7 million barrels per day.
Of this supply, ~5 million barrels per day are being exported ~2 million barrels per day are being refined in Saudi.
The surge in exports from Yanbu has now offset ~45% of lost Persian Gulf shipments this month.
To put this into perspective, exports from this port were at just ~1 million barrels per day before the war in January and February.
Saudi Arabia is actively looking for workarounds to the Hormuz closure.