Saudi Oil Reroutes Hit Capacity and Security Limits ...Middle East

When Iran shut down the Strait of Hormuz, Saudi Arabia quickly redirected its oil flows to the Red Sea. Now, that route has become dangerous because of the Houthi blockade, so Saudi is rerouting to Egypt—and two LNG tankers in the Egyptian port of Damietta just got struck by drones. OPEC’s number-one is running out of options to reroute its oil exports. In early March, after Iran effectively paralyzed vessel traffic via the world’s biggest oil chokepoint, every Gulf state that could redirect export flows did so. In the case of…

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