Saudi Aramco negotiates rerouting crude oil around Africa as Houthi attacks escalate

Two Asian oil refiners are in active discussions with Saudi Aramco about rerouting crude shipments the long way around Africa, a move that would add up to a month to delivery times and further strain an already jittery global energy market. The talks come after Houthi militants escalated attacks on tankers in the Red Sea, turning one of the world’s most critical shipping lanes into something closer to a gauntlet. Brent crude has climbed above $98 per barrel, up more than 33% in just a month. What’s actually happening in the Red Sea The Bab el-Mandeb Strait, a narrow chokepoint connecting the Red Sea to the Gulf of Aden, has become increasingly dangerous for commercial shipping. Three Saudi oil tankers recently reversed course in the strait after receiving direct warnings from Houthi forces against approaching Saudi ports. The two unnamed Asian buyers are now exploring alternatives with Aramco. Options on the table include sourcing crude from Egypt’s Sidi Kerir port on the Mediterranean coast, or using pipeline infrastructure that connects Red Sea oil hubs at Ain Sokhna to Mediterranean export terminals. Both workarounds avoid the Bab el-Mandeb entirely. Rerouting around the Cape of...