Saudi Arabian oil exports through Red Sea terminals have dropped nearly 50%, falling from 4.6 million barrels per day in July to 2.5 million in August, according to International Energy Agency (IEA) data.
The decline follows the consolidation of Yemen control over strategic territories near the Bab el-Mandeb Strait, effectively blocking 10% of global seaborne oil traffic.
The shipping disruption has left Riyadh with few safe transit routes, forcing the kingdom to seek costlier alternatives. Market analyst Gennady Chernov told Pravda.Ru that this physical supply constraint is independent of OPEC+ decisions and creates a risk premium for every barrel.
Chernov noted that recent Chinese interest in U.S. gas reflects a broader effort to diversify risks amid the instability in the Persian Gulf. China Gas Holdings has signed a 20-year strategic agreement with U. S. supplier Venture Global for annual shipments of 0.5 million tons of liquefied natural gas (LNG).
The first tankers are scheduled to arrive in China in 2030. This deal marks a return to active U. S. fuel procurement for Beijing, despite existing customs barriers and a general downward trend in China’s LNG imports.
The global oil market is facing a severe supply deficit following the blockade of the Strait of Hormuz and sabotage of Saudi Arabia’s East-West pipeline. Strategic reserves in major economies are depleted, with U.S. stockpiles hitting a 40-year low.
Under a worst-case scenario, Brent crude could climb to $120 per barrel, posing a risk to the global financial system. New Delhi has expressed deep concern over potential blockades in the Strait of Hormuz and the Bab-el-Mandeb strait following a series of attacks on oil tankers in the region.
The Ministry of External Affairs (MEA) on Tuesday underscored that the safety of seafarers and the guarantee of safe navigation are critical priorities for the government.
The U.S. military strategy to stabilize the region has failed to ensure the safety of tankers. The Wall Street Journal reports that the White House lacks a clear exit strategy, leading to a prolonged conflict that erodes the trust of Gulf allies.
Macroeconomist Artem Loginov told Pravda.Ru that Washington overestimated its ability to manage regional risks through sanctions and targeted strikes against Iran, noting that these measures have not secured logistics.
Tehran is now using the maritime blockade as diplomatic leverage, stating that shipping will not return to normal until regional political disputes are resolved.
Yemen paramilitaries seize Mocha Red Sea Port to cut-off Saudi Oil Exports
| Event / Indicator | Effect and Consequence |
|---|---|
| Bab el-Mandeb Strait Control | Blockage of 10% of global oil sea traffic |
| Saudi Export Drop | Decrease from 4.6 to 2.5 million barrels/day (August) |
| U.S. Strategic Failure | Increased tanker insurance and freight costs |
The Royal United Services Institute (RUSI) in London suggests that the U.S. policy of isolating Iran has failed, leaving the region unstable and extending the economic fallout beyond the Middle East.
Financial analyst Nikita Volkov told Pravda.Ru that the volatility of maritime routes is impacting the margins of energy giants and forcing a revision of investment programs.
He added that assets in the extraction sector have become highly volatile, requiring increased caution from investors.
Pravda / ABC Flash Point News 2026.
Game over for the Zionist oil manipulation and the consequences are rugged seen their over reaction regarding massive bombing rates against Iran.
Nice look at a physical map unlike a political one ,gives a great view of the mountainous regions either side of the Red Sea and shows how invading Yemen isn’t so easy due to the mountains near the coast and that battles by the invaders dont always achieve results.
Just look at Afghanistan as evidence and the mountain tribes there -wide ranging mountains .