Yanbu Port on the Red Sea has emerged as a vital hub for international trade, stepping in to stabilize global energy and commodity supplies amid the near-total closure of the Strait of Hormuz due to the Iran conflict and ongoing military tensions.
In a move underscoring Saudi Arabia’s infrastructure readiness, oil exports through the port have surged to nearly 4 million barrels per day, marking a historic increase aimed at easing global shortages and ensuring steady supply to international markets.
At the center of this transformation is the East-West Pipeline, a strategic artery stretching across the Arabian Peninsula. The pipeline transports crude oil from the Kingdom’s vast eastern fields to Yanbu Industrial City, enabling Saudi Arabia to reroute nearly half of the shipments that would normally pass through the Strait of Hormuz. According to Reuters, flows peaked at 4.19 million barrels per day.
The surge has placed operational pressure on Yanbu Port, where around 40 oil tankers are currently waiting offshore, despite the port’s capacity to handle only four supertankers at a time.
Saudi Aramco, the world’s largest oil exporter, is leveraging this route to offset supply disruptions. On March 10, the company confirmed it could pump up to 7 million barrels per day to Yanbu via the pipeline, with roughly 5 million barrels available for export and the remainder allocated to domestic refining.
Data from Kpler shows Saudi crude exports exceeded 7 million barrels per day in February. In March, exports via Yanbu averaged about 2.9 million barrels per day, significantly higher than the 770,000 barrels recorded in January and February. During the week beginning March 16, exports climbed further to nearly 4 million barrels per day, with expectations of continued growth.
Shipping markets have responded swiftly. Freight rates for transporting Saudi crude from the Red Sea to Asia have declined in recent weeks after an initial spike above $450,000 per day. The influx of tankers into Yanbu has increased supply, easing price pressures and improving cost competitiveness.
The steady flow of shipments has also strengthened supply reliability for key Asian importers, including South Korea, Japan, and China, reinforcing confidence in Saudi Arabia’s logistical capabilities.
Beyond energy, Saudi Arabia has expanded its role in safeguarding regional supply chains.
The Transport General Authority has issued additional licenses to Saudi Arabia Railways (SAR), boosting container capacity to over 2,500 units daily. A newly launched land corridor linking Dammam to Sharjah, supported by thousands of trucks, has further enhanced trade flows across the Gulf.
With these measures, Saudi Arabia has positioned itself as a critical lifeline for global trade, ensuring stability amid ongoing geopolitical disruptions.
