Saudi Arabia Resorts to 'Hormuz Shuttle' as Desperate Measure... Breathing Room for Crude Supply

[Anchor]

Saudi Arabia, with its main crude oil export routes blocked, has turned to a desperate measure known as the "Hormuz Shuttle." Similar to the tactic Iran uses to covertly operate oil tankers to evade U.S. sanctions, analysts say this is providing a bit of breathing room for crude oil supplies.

Correspondent Han Sang-woo reports from Beijing.

[Reporter]

Following armed clashes with Yemen's Houthis, drone attacks severely damaged two pumping stations along Saudi Arabia's East-West pipeline.

While full restoration is projected to take over a month, emergency measures are also underway to secure alternative pipeline routes.

[Stuart Livingstone-Wallace / Bloomberg Middle East Bureau Chief: "It looks like they're going to try and bypass the section of the pipeline that was hit. Although the pressure is expected to be lower, they'll be hoping to restore some volume by doing that."]

At the same time, the country is also utilizing a crude transport method dubbed the "Hormuz Shuttle."

This method involves turning off ship identification transponders at night, passing through the Strait of Hormuz via Omani waters, and transshipping the oil onto other vessels bound for importing countries.

It is a tactic previously used by Iran to bypass U.S. maritime blockades, and the United Arab Emirates has also been employing it since last April.

The international crude market estimates that Middle Eastern crude moving through such methods reaches up to 9 million barrels per day.

International oil prices have edged down for two consecutive days, which analysts attribute to a partial easing of concerns over Saudi supply disruptions.

Another factor is the influence of China, which is reportedly holding 1.4 billion barrels in strategic reserves, accounting for one-third of the global crude stockpiles.

With the expansion of electric vehicles reducing oil demand, China's reduction in import volumes is having a positive effect on stabilizing international oil prices.

[Samantha Gross / Fellow at the Brookings Institution: "Since the Iran war, fossil fuels have become more expensive and less secure, giving another important reason to move away from fossil fuels."]

As the protracted war involving Iran continues, new variables are emerging in the global oil market.

(Video by Lee Seung-yeol, Graphics by Kim Han-gil)
※ Please note: This article was translated by AI and may contain errors.