Saudi Arabia’s oil shipments through the Red Sea have dropped sharply, falling 41% since peaking in March 2026. Vessel tracking and cargo data from Wood Mackenzie reveal the kingdom’s crude exports via Yanbu terminal have collapsed from the 3.8 to 4 million barrels per day range typical earlier this year.
Strait of Hormuz Closure Reshapes Saudi Export Routes
The disruption began as the Strait of Hormuz, a critical chokepoint for about 20% of global oil, effectively shut down amid escalating tensions involving the US, Israel, and Iran. In response, Saudi Arabia ramped up throughput on its East-West pipeline, capable of moving 7 million barrels per day, diverting most crude flows to the Red Sea port of Yanbu.
However, this strategic pivot has faced mounting challenges. Despite concentrating exports through Yanbu, volumes have steadily declined from March’s high point. Oddly, the Joint Organisations Data Initiative highlighted that Saudi crude exports overall sank to a record low of 4.974 million barrels per day that March, even as Red Sea shipments hit their highest levels.
Additional instability arrived in July 2026 when Yemen’s Houthi forces threatened a naval blockade around the Bab el-Mandeb Strait. This waterway is vital since it handles nearly 7% of the world’s oil supply daily, adding another layer of uncertainty to global energy flows.
Oil prices have responded with volatility, oscillating between $88 and $96 per barrel since mid-July. Markets remain jittery over whether disruptions will escalate or abate, feeding into broader economic concerns.
These price movements ripple into the crypto space. Surging oil past $90 has revived inflation worries, which in turn dampen expectations for Federal Reserve rate cuts a key driver behind Bitcoin’s bullish momentum in 2026. plus miners feel the pinch directly. Since crypto mining consumes vast amounts of electricity, rising crude prices often push up power costs, especially where natural gas prices correlate with oil. Miners operating on tight margins may face profitability crunches, potentially leading to declines in network hashrate or forced asset sales.
Tracking the $88 to $96 range is key. A sustained move above $96 could trigger wider risk-off sentiment, further pressuring risk assets including cryptocurrencies. Conversely, slipping below $88 might signal easing supply concerns, potentially boosting digital currencies.
