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Saudi Arabia Diverts Oil Amid Red Sea Tensions

3/19/2026

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Story summary
  • Saudi Arabia is implementing a "Plan B" to divert crude oil through Yanbu because the Strait of Hormuz is blocked.
  • The Yanbu route has limited capacity, but tankers bound for China are using it.
  • Red Sea shipping traffic has declined due to Houthi attacks that disrupt oil markets.
  • Iran warned the Red Sea could be targeted in retaliation against U.S. forces.