Saudi Oil Exports Plummet as Houthi Control of Bab el-Mandeb Disrupts Shipping

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 Houthi 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. 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.