Saudi Aramco reportedly plans to switch to Red Sea port
On March 4, 2026, the latest news showed that Saudi Arabian Oil Company (Saudi Aramco) is studying the plan to switch more crude oil cargo to Yanbu port for shipment.
Iran's Islamic Revolutionary Guard Corps commander Jabari said any ship trying to pass through the Strait of Hormuz would be destroyed, adding that Iran would not allow a drop of oil to flow out of the region.
Dozens of ships are stranded as the Strait of Hormuz is currently closed. Yanbu is located in the middle of the east coast of the Red Sea in western Saudi Arabia. It is the second largest city on the west coast of the country after Jeddah and is not within the scope of the Persian Gulf.
Saudi Aramco normally exports most of its crude from ports in the Gulf, but conflicts in the Middle East have led to severe ship congestion. However, the company has a pipeline with a daily transmission capacity of 5 million barrels, which can transport crude oil from the eastern oil fields to the western Red Sea coast.
According to people familiar with the matter, Saudi Aramco has asked some Asian customers whether they can pick up their goods in Yanbu instead. At the same time, the company is also seeking opinions from shipping companies to evaluate whether to change the loading location from the Persian Gulf to Yanbu.
But it should be pointed out that the Red Sea is not absolutely safe. Yemen's Houthis have previously threatened to resume attacks on Red Sea shipping lanes. Although no new attacks have been reported, the risk remains significant and some major shipping lines have canceled plans to return to the route.
Data show that Saudi Arabia's current crude oil production is about 10 million barrels per day, and exports rose to about 7.2 million barrels per day last month. However, the existing capacity of the country's 746-mile east-west pipeline is still insufficient to cover all overseas sales needs.
As the war in the Middle East expands, Saudi Aramco has been affected - the company was forced to close the Ras Tanura refinery, the largest refinery in the Persian Gulf, after a drone attack.
At the same time, the slowdown in shipping has also raised concerns that oil storage tanks could fill up quickly, which may eventually force Saudi Arabia to cut crude oil production.
Iran's Islamic Revolutionary Guard Corps commander Jabari said any ship trying to pass through the Strait of Hormuz would be destroyed, adding that Iran would not allow a drop of oil to flow out of the region.
Dozens of ships are stranded as the Strait of Hormuz is currently closed. Yanbu is located in the middle of the east coast of the Red Sea in western Saudi Arabia. It is the second largest city on the west coast of the country after Jeddah and is not within the scope of the Persian Gulf.
Saudi Aramco normally exports most of its crude from ports in the Gulf, but conflicts in the Middle East have led to severe ship congestion. However, the company has a pipeline with a daily transmission capacity of 5 million barrels, which can transport crude oil from the eastern oil fields to the western Red Sea coast.
According to people familiar with the matter, Saudi Aramco has asked some Asian customers whether they can pick up their goods in Yanbu instead. At the same time, the company is also seeking opinions from shipping companies to evaluate whether to change the loading location from the Persian Gulf to Yanbu.
But it should be pointed out that the Red Sea is not absolutely safe. Yemen's Houthis have previously threatened to resume attacks on Red Sea shipping lanes. Although no new attacks have been reported, the risk remains significant and some major shipping lines have canceled plans to return to the route.
Data show that Saudi Arabia's current crude oil production is about 10 million barrels per day, and exports rose to about 7.2 million barrels per day last month. However, the existing capacity of the country's 746-mile east-west pipeline is still insufficient to cover all overseas sales needs.
As the war in the Middle East expands, Saudi Aramco has been affected - the company was forced to close the Ras Tanura refinery, the largest refinery in the Persian Gulf, after a drone attack.
At the same time, the slowdown in shipping has also raised concerns that oil storage tanks could fill up quickly, which may eventually force Saudi Arabia to cut crude oil production.
Release time: 2026-03-04
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