Saudi Arabia Adopts Unprecedented Strategy to Bypass Hormuz

Saudi Arabia has adopted a new strategy to maintain its position in global energy markets amid rising tensions in the Middle East, with state oil giant Saudi Aramco using a rare ship-to-ship transfer method to supply crude oil to Asian refineries while avoiding the Strait of Hormuz.

According to two Reuters sources, disruptions to commercial shipping in the conflict-prone waterway have prompted Aramco to transfer crude between vessels off the coast of Fujairah, United Arab Emirates, as an alternative export route. However, it remains unclear how Aramco’s tankers are reaching Fujairah while avoiding security risks in the region.

Following the escalation of the US-Israel-Iran conflict, Saudi Arabia had earlier redirected part of its crude exports through the Red Sea port of Yanbu. That route also became increasingly risky after attacks by Houthi rebels in the Red Sea and the Bab el-Mandeb Strait.

The geopolitical tensions and continuing conflicts have affected Aramco’s market share in key Asian markets, including India. To protect its exports and maintain supply reliability, Riyadh is now relying on the ship-to-ship transfer system as a flexible logistical alternative.