Saudi Arabia’s oil exports have significantly declined amid escalating regional conflicts affecting key shipping routes, marking the kingdom’s lowest export levels in over a decade. The disruptions come amid intensified tensions involving Iran, its allies, and the Houthi militia in Yemen, creating growing challenges to the flow of Saudi crude to global markets.

Following Iran’s closure of the Strait of Hormuz—one of Saudi Arabia’s primary oil export routes—the kingdom rapidly shifted to alternative pathways to maintain shipments. Initially, Saudi Arabia increased exports through pipelines running to the Red Sea, bypassing the Strait of Hormuz. However, the rising threat from the Iranian-backed Houthis in Yemen, who declared a blockade through the Red Sea in July, disrupted even this route. In response, Saudi Arabia began diverting shipments northward toward a pipeline near the Suez Canal for transit via the Mediterranean, a longer and more costly passage primarily used to reach Asian markets.

Despite these adjustments, Saudi oil exports fell to approximately 3.2 million barrels per day last month, a level unseen in at least 13 years, according to maritime data firm Kpler. The number of Saudi cargo ships passing through the Bab al-Mandab Strait into the Red Sea has also dramatically decreased, with only two such shipments recorded in the past week. The Houthis have intensified their attacks on vessels associated with Saudi Arabia, claiming responsibility for at least seven strikes since July 20. These have included assaults far beyond the southern Red Sea areas, reaching zones previously considered safer for shipping.

While ships not linked to Saudi Arabia continue to use the Bab al-Mandab route at a reduced frequency, the overall volume of traffic has declined significantly, as many commercial operators increasingly avoid the Red Sea. Analysts attribute these shifts not only to the physical risks posed by the conflict but also to the expanding geographic scope of threats, including attacks on vessels in waters off the United Arab Emirates and Jordan involving drones and missile launches. These developments come amid broader military escalations between the United States and Iran, including Iranian missile strikes and U.S. retaliatory attacks on Iranian oil tankers.

Experts highlight that the conflict in Yemen, which has been ongoing since 2014, has taken on new regional dimensions linked to the U.S.-Iran confrontation. The Houthis are seen as pursuing their own territorial and political objectives but are also acting in alignment with Iranian strategic interests aimed at disrupting global energy routes. Analysts caution that the ongoing hostilities could materially impact global energy markets, even if key waterways like the Bab al-Mandab Strait remain formally open, as the risks drive shipping companies to seek longer, costlier alternatives such as the route around the Cape of Good Hope in southern Africa.

Saudi officials have warned of possible retaliation against Houthi attacks that have wounded dozens of civilians and hit energy infrastructure inside the kingdom. The intensified conflict raises concerns over regional stability and the security of vital maritime trade lanes crucial to the global oil supply chain.