Saudi oil caught in regional chokepoints

by AZADEH AKBAR
Special contributor
TEHRAN, (CAJ News) – SAUDI Arabia is facing mounting pressure on its energy exports as the war involving the United States and Iran, combined with the Houthi advance in Yemen, threatens two of the world’s most important maritime energy corridors.

The Strait of Hormuz has been severely disrupted since the conflict escalated, while Houthi forces have expanded their presence around Yemen’s Red Sea coast and the Bab el-Mandeb Strait.

Saudi Arabia has also temporarily shut its critical East-West oil pipeline following a drone attack, further reducing alternatives for transporting crude to global markets.

The consequences are global. The Strait of Hormuz carried about 20.9 million barrels of oil per day in the first half of 2025, equivalent to roughly one-quarter of global maritime oil trade.

About one-fifth of global liquefied natural gas trade also passed through the waterway.

The Red Sea is equally strategic. The Bab el-Mandeb connects the Indian Ocean with the Red Sea and Suez Canal, providing a shorter route between Asian, Middle Eastern and European markets.

However, shipping through the corridor had already fallen sharply after Houthi attacks began in late 2023, forcing many vessels to take the much longer route around the Cape of Good Hope.

The latest escalation has intensified the danger.

The Houthis have seized strategic positions near Bab el-Mandeb and say their actions are linked to the wider confrontation involving Iran, Israel and the United States.

Saudi Arabia now faces the prospect of having both its principal maritime export options and alternative pipeline infrastructure exposed to conflict.

Washington and its allies have described military action against Iran in terms of security and nuclear non-proliferation.

Iran disputes the justification.

The International Atomic Energy Agency has reported serious verification difficulties following attacks on Iranian nuclear facilities, including the loss of continuity of knowledge over nuclear material inventories.

The nuclear question has also fuelled accusations of selective international enforcement. Israel is not a party to the Nuclear Non-Proliferation Treaty and does not place its nuclear facilities under comprehensive IAEA safeguards.

Independent estimates of its arsenal exist, but Israel maintains a policy of nuclear ambiguity.

Such disparities matter because confidence in international law depends partly on consistent application.

If states believe rules are enforced differently according to political alliances, the credibility of the wider international security system can weaken.

Keeping Hormuz and Red Sea routes open is therefore more than a regional concern.

It supports predictable energy supplies, moderates shipping and insurance costs, protects food and manufacturing supply chains, and enables global commerce.

For Saudi Arabia, restoring secure export routes is vital to maintaining oil revenues and economic transformation plans.

For importing nations, reliable maritime access can restrain energy inflation. For the world economy, reopening the corridors would reduce uncertainty and help businesses plan investment and production.

The crisis demonstrates that military confrontation around strategic waterways can rapidly become an international economic crisis.

– CAJ News