Hormuz Strait Disruptions: Saudi Aramco Cuts Oil Supplies to Asia

JAKARTA — Saudi Arabia’s state-owned oil company, Saudi Aramco, has reportedly cut crude oil supply allocations to buyers in Asia for April 2026 shipments. Citing Reuters on Monday (23/3/2026), this policy comes amid disruptions to global energy trade routes due to escalating conflicts in the Middle East affecting shipping flows through the Strait of Hormuz. Trade sources familiar with the matter said Aramco informed at least two Asian buyers that they could only lift Arab Light crude from the Red Sea terminal in Yanbu for April 2026 contracts. This move marks the second consecutive month the company has curtailed shipments to Asia, reflecting the direct impact of disruptions to major Gulf export routes amid rising maritime security risks. The Strait of Hormuz is one of the world’s most vital energy shipping lanes, and disruptions in the region have prompted logistical strategy changes among major oil exporters. Citing MarketWatch, Saudi Arabia, the world’s largest oil exporter, has increased use of its east-west pipeline network to divert shipments from the Gulf to the Red Sea port of Yanbu. However, the capacity of alternative routes remains limited and vulnerable to attacks, as demonstrated by drone incidents near Yanbu facilities. In recent weeks, dozens of tankers have reportedly been waiting for cargoes at that port. Exports through Yanbu have surged to nearly 3 million barrels per day (bpd), far higher than the previous around 750,000 bpd. Nevertheless, infrastructure limitations and security risks are creating uncertainty over the continuity of global supplies. Shipping tracking data shows Saudi crude exports fell significantly in March 2026. According to analytics firm Kpler, shipments dropped from around 7.108 million bpd in February to 4.355 million bpd in March 2026.