Saudi Arabia and the law of the sea: Keeping global oil supplies moving

From the report

For decades, energy traders have feared a crisis in the Strait of Hormuz, the narrow waterway between Iran and Oman through which a substantial share of the world’s oil supplies passes. Any disruption to this vital route threatens to send oil prices soaring, increase shipping and insurance costs, and destabilize global energy markets. Recent tensions have brought these risks into sharp focus, highlighting the importance of alternative export routes and Saudi Arabia’s growing role in safeguarding the international energy supply chain.

At the centre of this challenge is Saudi Arabia’s East-West Pipeline, an essential piece of infrastructure that transports crude oil from the Kingdom’s eastern oilfields to Yanbu on the Red Sea. By providing an alternative to the Strait of Hormuz, the pipeline offers Saudi Arabia a strategic advantage when maritime routes in the Gulf are threatened. It also strengthens the importance of the Red Sea and the Bab Al-Mandab Strait, a critical passage connecting the Red Sea to the Gulf of Aden and the wider Indian Ocean.

The significance of this alternative route extends far beyond Saudi Arabia. When the Strait of Hormuz becomes inaccessible, the ability to transport oil through the Red Sea can help reduce supply disruptions and ease pressure on international markets. However, the growing importance of this corridor also exposes it to security threats, including attacks by Yemen’s Houthi movement on commercial vessels.