Red Sea fix? China-bound oil tankers tap Saudi plan to bypass Strait of Hormuz

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Saudi Arabia is activating its Red Sea contingency plan, diverting oil tankers through the port of Yanbu to bypass the Strait of Hormuz. This action follows Iran's closure of the strait in response to recent military strikes, disrupting global energy markets. A China-bound VLCC, New Vista, recently loaded crude oil at Yanbu after avoiding the Strait of Hormuz due to safety concerns. Saudi Aramco is redirecting a larger share of crude flows through its East-West Pipeline to the Red Sea. While the Yanbu route is open to all buyers, China-bound cargoes are expected to be significant due to China's status as a major customer of Saudi Aramco. Analysts caution that the Red Sea route has limited capacity.
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