Saudi Arabia is creating an alternative oil export route through the Red Sea as security threats disrupt shipping around the Bab al-Mandab Strait.

The kingdom is using tankers to transport crude from its Red Sea port of Yanbu to Ain Sokhna in Egypt. From there, the oil can travel north through Egypt's SUMED pipeline to Sidi Kerir on the Mediterranean coast, allowing Saudi crude to reach international markets without relying entirely on vulnerable maritime routes.

The alternative route has gained importance after Yemen's Houthi forces announced a blockade targeting vessels loaded at Yanbu.

Saudi Arabia Creates New Red Sea Oil Route As Houthi Threats Disrupt Shipping

Saudi Arabia's Red Sea oil shipments are increasingly disappearing from tracking systems as tanker operators reportedly switch off their Automatic Identification Systems amid growing fears of Houthi attacks.

The development comes as the Houthis intensify threats against Saudi-linked shipping and oil infrastructure, putting a key route for global energy supplies under mounting pressure.

Recent Houthi attacks have targeted commercial shipping in the Bab al-Mandab Strait, while the group has also claimed attacks involving Saudi oil infrastructure, including the Yanbu oil hub and Aramco facilities in Jazan.

The disruption is making it harder for traders and energy agencies to determine how much Saudi crude is actually being shipped. Estimates of recent Yanbu loadings have reportedly varied significantly between shipping-data providers.

At the same time, Saudi Arabia appears to be moving more crude north through the Red Sea, while risks around the Suez Canal, Bab al-Mandab and Strait of Hormuz continue to complicate global energy flows.

Saudi Oil Tankers Go Dark Amid Houthi Attacks | Houthi Attacks Shake Red Sea Energy Route

Europe and much of Asia are preparing for a potential winter energy crisis as the ongoing Iran conflict continues to disrupt global natural gas supplies. Analysts warn that reduced LNG availability, damage to Qatar's export infrastructure, and disruptions in the Strait of Hormuz could tighten global energy markets just months before peak heating demand. According to energy consultancy Wood Mackenzie, Europe's gas storage levels remain well below the target needed for winter, while Asian importers face growing competition for limited LNG cargoes. European natural gas prices have already surged, raising concerns over higher household energy bills, industrial costs, and possible gas rationing if supply conditions worsen.

Iran War Triggers Global Energy Crisis | Europe & Asia Face Winter Gas Shortage | LNG Supply Crunch 

Europe’s energy market is facing renewed pressure as gas prices surge amid an intense global LNG competition. European LNG futures climbed to around 62 euros per megawatt-hour, reaching their highest level since earlier market turbulence triggered by the Iran-Israel conflict. Prices have jumped nearly 50% from June levels, when they were trading in the 40–42 euro range.

Economic gloom hits UK's Gen Z | World Business Watch 

Iran is intensifying pressure in West Asia through its Houthi allies, who have launched fresh attacks on Saudi oil tankers in the Red Sea, raising fears of a major global energy crisis. With the Strait of Hormuz already under pressure, the Bab el-Mandeb Strait has emerged as a second strategic choke point, threatening global oil and gas supplies.

The Houthis claim responsibility for missile and drone strikes on Saudi-linked vessels, while Saudi Arabia has confirmed damage to one of its oil tankers. Analysts warn that if both the Strait of Hormuz and the Bab el-Mandeb are disrupted simultaneously, nearly one-quarter of the world's oil and gas supply could be affected.


Red Sea Crisis deepens | Houthi Missile attacks on Saudi ships escalate Iran-US regional conflict

India has removed restrictions on the retail sale of petrol and diesel to commercial consumers from July 1, bringing an end to emergency measures introduced to protect domestic fuel supplies amid disruptions in global energy markets caused by tensions in the West Asia. The restrictions, imposed in June, had prohibited commercial buyers from purchasing fuel at retail pumps and limited diesel sales to a maximum of 200 litres per vehicle or customer per day. The development followed after tensions emerged in the region, threatening supply chains and leading to fuel shortages within the country. The government said the curbs were intended to ensure fair distribution of petrol and diesel, prevent hoarding and diversion of supplies, and maintain uninterrupted availability of fuel at reasonable prices. With market conditions now showing signs of stability, the restrictions have been lifted, allowing transport operators, industrial users, and other commercial consumers to buy fuel from retail outlets without any quantity limits.&nbsp;Also read:<a href="https://www.wionews.com/trending/is-india-s-monsoon-changing-what-monsoon-2026-reveals-about-climate-trends-wion-decodes-1782817425856"> Is India’s monsoon changing? What monsoon 2026 reveals about climate trends | WION Decodes</a><h3>Rise of unequal retail demand</h3>The decision to impose the restrictions followed a growing price difference between retail and bulk fuel supplies. As diesel remained considerably cheaper at retail outlets run by state-owned oil marketing companies, many commercial users, including transport firms, had shifted their purchases away from bulk supply channels. Meanwhile, Diesel was sold to industrial users at nearly Rs 40 per litre more than retail prices, despite accounting for nearly 40 per cent of India's fuel demand, making an arbitrage that led to supply pressures at fuel stations in several parts of the country. The rise in retail demand unequally affected state-run retailers Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp, which jointly operate nearly 90 per cent of India's more than 100,000 fuel stations.&nbsp;WATCH: https://www.wionews.com/videos/study-links-iron-buildup-in-brain-cells-to-neuron-damage-1782817017418/embed During the period of restrictions, private fuel retailers that sold diesel at rates more aligned with market prices witnessed a sharp decline in sales, while state-owned fuel stations recorded a substantial increase in demand. As a major exporter of refined petroleum products, India had implemented temporary measures to safeguard nationwide fuel availability amid disruptions in global energy markets caused by geopolitical tensions. The decision to withdraw the restrictions indicates that the government believes domestic fuel supplies have stabilised and that such emergency measures are no longer necessary.

The government said the curbs were intended to ensure fair distribution of petrol and diesel, prevent hoarding and diversion of supplies, and maintain uninterrupted availability of fuel at reasonable prices. 

India has removed restrictions on the retail sale of petrol and diesel to commercial consumers from July 1, bringing an end to emergency measures introduced to protect domestic fuel supplies amid disruptions in global energy markets caused by tensions in the West Asia. The restrictions, imposed in June, had prohibited commercial buyers from purchasing fuel at retail pumps and limited diesel sales to a maximum of 200 litres per vehicle or customer per day. The development followed after tensions emerged in the region, threatening supply chains and leading to fuel shortages within the country. The government said the curbs were intended to ensure fair distribution of petrol and diesel, prevent hoarding and diversion of supplies, and maintain uninterrupted availability of fuel at reasonable prices. With market conditions now showing signs of stability, the restrictions have been lifted, allowing transport operators, industrial users, and other commercial consumers to buy fuel from retail outlets without any quantity limits. Also read: Is India’s monsoon changing? What monsoon 2026 reveals about climate trends | WION Decodes Rise of unequal retail demand The decision to impose the restrictions followed a growing price difference between retail and bulk fuel supplies. As diesel remained considerably cheaper at retail outlets run by state-owned oil marketing companies, many commercial users, including transport firms, had shifted their purchases away from bulk supply channels. Meanwhile, Diesel was sold to industrial users at nearly Rs 40 per litre more than retail prices, despite accounting for nearly 40 per cent of India's fuel demand, making an arbitrage that led to supply pressures at fuel stations in several parts of the country. The rise in retail demand unequally affected state-run retailers Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp, which jointly operate nearly 90 per cent of India's more than 100,000 fuel stations. WATCH: https://www.wionews.com/videos/study-links-iron-buildup-in-brain-cells-to-neuron-damage-1782817017418/embed During the period of restrictions, private fuel retailers that sold diesel at rates more aligned with market prices witnessed a sharp decline in sales, while state-owned fuel stations recorded a substantial increase in demand. As a major exporter of refined petroleum products, India had implemented temporary measures to safeguard nationwide fuel availability amid disruptions in global energy markets caused by geopolitical tensions. The decision to withdraw the restrictions indicates that the government believes domestic fuel supplies have stabilised and that such emergency measures are no longer necessary.

The government said the curbs were intended to ensure fair distribution of petrol and diesel, prevent hoarding and diversion of supplies, and maintain uninterrupted availability of fuel at reasonable prices.&nbsp;

India ends emergency restrictions on retail sale of petrol and diesel to commercial buyers from July 1

India is currently navigating a severe Liquefied Petroleum Gas (LPG) supply crunch. In California, motorists are paying more than $6 a gallon for petrol. Though separated by thousands of miles, both crises stem from the same disruption: the collapse of energy flows through the Strait of Hormuz following the US-Israeli conflict with Iran. Before the conflict, roughly one-fifth of global oil supplies passed through the narrow waterway. Iran’s near-closure of the route has since thrown global fuel markets into turmoil, forcing countries to draw down reserves and rethink supply chains. The knock-on effects are now being felt from Indian kitchens to American petrol stations.&nbsp;<h3>Why India’s LPG shortage matters to California</h3>&nbsp;India relies heavily on liquefied petroleum gas (LPG) as its primary cooking fuel, with more than 90 per cent of imports previously sourced from the Middle East. Faced with tightening supplies, New Delhi directed refiners to maximise LPG production to prevent a deeper domestic shortage.&nbsp;ALSO READ: <a href="https://www.wionews.com/world/does-hosting-putin-help-or-hurt-xi-s-bid-to-project-china-as-a-responsible-global-power-1779180710403">Does hosting Putin help or hurt Xi’s bid to project China as a responsible global power?</a>&nbsp;That decision, however, has created another problem overseas. Indian refiners have reduced production of alkylates — cleaner-burning fuel additives produced using LPG feedstock. California depends heavily on alkylates because the state mandates a unique petrol blend designed to reduce smog and meet strict environmental standards. “With India’s LPG supply constrained by the closure of the Strait of Hormuz, refiners there are producing and exporting less alkylate, adding pressure to an already tight California gasoline market,” Mason Hamilton, chief economist at the American Petroleum Institute told Reuters.&nbsp;Reliance Industries, operator of the world’s largest refinery complex in Jamnagar, Gujarat, said this month it was cutting alkylate output and exports to prioritise LPG production. According to Kpler data, India’s alkylate exports fell to 33,000 barrels per day in April, nearly half March levels and the lowest since October 2023.&nbsp;ALSO READ: <a href="https://www.wionews.com/world/will-russia-s-massive-power-of-siberia-2-gas-pipeline-dominate-xi-putin-talks-in-beijing-what-is-it-wion-decodes-1779175340632">Will Russia’s massive ‘Power of Siberia 2’ gas pipeline dominate Xi-Putin talks in Beijing? What is it? | WION Decodes</a>&nbsp;<h3>California faces limited options</h3>&nbsp;The supply squeeze comes as California’s fuel market is already under pressure from falling Asian fuel exports and low stockpiles. According to Reuters, GasBuddy data showed average petrol prices in the state reached $6.14 per gallon on Friday, with analysts warning prices could climb beyond $6.50 in the coming weeks. “The more acute the alkylate supply shortfall becomes, the higher it could push prices in California,” said GasBuddy analyst Patrick De Haan.&nbsp;Meanwhile, India’s shortages remain severe, with reports of long queues for LPG cylinders and some consumers turning to the black market. Restaurants and small businesses have also warned of possible shutdowns as the global energy disruption continues to spread across economies.

Iran’s near-closure of the route has since thrown global fuel markets into turmoil, forcing countries to draw down reserves and rethink supply chains. The knock-on effects are now being felt from Indian kitchens to American petrol stations.

India is currently navigating a severe Liquefied Petroleum Gas (LPG) supply crunch. In California, motorists are paying more than $6 a gallon for petrol. Though separated by thousands of miles, both crises stem from the same disruption: the collapse of energy flows through the Strait of Hormuz following the US-Israeli conflict with Iran. Before the conflict, roughly one-fifth of global oil supplies passed through the narrow waterway. Iran’s near-closure of the route has since thrown global fuel markets into turmoil, forcing countries to draw down reserves and rethink supply chains. The knock-on effects are now being felt from Indian kitchens to American petrol stations. Why India’s LPG shortage matters to California India relies heavily on liquefied petroleum gas (LPG) as its primary cooking fuel, with more than 90 per cent of imports previously sourced from the Middle East. Faced with tightening supplies, New Delhi directed refiners to maximise LPG production to prevent a deeper domestic shortage. ALSO READ: Does hosting Putin help or hurt Xi’s bid to project China as a responsible global power? That decision, however, has created another problem overseas. Indian refiners have reduced production of alkylates — cleaner-burning fuel additives produced using LPG feedstock. California depends heavily on alkylates because the state mandates a unique petrol blend designed to reduce smog and meet strict environmental standards. “With India’s LPG supply constrained by the closure of the Strait of Hormuz, refiners there are producing and exporting less alkylate, adding pressure to an already tight California gasoline market,” Mason Hamilton, chief economist at the American Petroleum Institute told Reuters. Reliance Industries, operator of the world’s largest refinery complex in Jamnagar, Gujarat, said this month it was cutting alkylate output and exports to prioritise LPG production. According to Kpler data, India’s alkylate exports fell to 33,000 barrels per day in April, nearly half March levels and the lowest since October 2023. ALSO READ: Will Russia’s massive ‘Power of Siberia 2’ gas pipeline dominate Xi-Putin talks in Beijing? What is it? | WION Decodes California faces limited options The supply squeeze comes as California’s fuel market is already under pressure from falling Asian fuel exports and low stockpiles. According to Reuters, GasBuddy data showed average petrol prices in the state reached $6.14 per gallon on Friday, with analysts warning prices could climb beyond $6.50 in the coming weeks. “The more acute the alkylate supply shortfall becomes, the higher it could push prices in California,” said GasBuddy analyst Patrick De Haan. Meanwhile, India’s shortages remain severe, with reports of long queues for LPG cylinders and some consumers turning to the black market. Restaurants and small businesses have also warned of possible shutdowns as the global energy disruption continues to spread across economies.

Iran’s near-closure of the route has since thrown global fuel markets into turmoil, forcing countries to draw down reserves and rethink supply chains. The knock-on effects are now being felt from Indian kitchens to American petrol stations.

What do Indian kitchens have to do with California gas prices? India’s LPG crisis may hold the answer

Disruptions in the Strait of Hormuz, one of the world’s most critical oil transit chokepoints, have sent global energy markets into shock. The narrow maritime corridor carries a significant share of the world’s crude oil and LNG shipments, making any instability there a major concern for global supply chains.


Strait of Hormuz Disruption Sends Energy Markets into Shock 

The global energy crisis has led the German government to impose a new gas tax on households. The increased rates will be effective from October 1st and last till April 2024. Under the new levy, an average family of four is expected to pay almost $500 more per year and businesses will also be subjected to these new charges.

WION Climate Tracker | Germany imposes winter gas tax despite concerns

In face of the global energy shortage that the world is experiencing due to the ongoing Russia-Ukraine conflict, the International Energy Agency (IEA) has announced that its member countries will be releasing a whopping 120 million barrels of crude oil reserves over a period of six months.

As per IEA the "unanimous" agreement to release the stock was reached by the organisation's 31 members on April 1. As per a Reuters report, about half of the 120 million barrels will be contributed by the United States.

Also read |&nbsp;<a href="https://www.wionews.com/world/white-house-says-us-ready-to-become-indias-reliable-supplier-to-counter-russia-dependence-468962">White House says US ready to become India's 'reliable supplier' to counter Russia dependence</a>

This is the largest stock release in the history of organisation and was confirmed by the Governing Board of the IEA as reported by Xinhua news agency.

Earlier IEA had released 62.7 million barrels of crude oil on March 1st and this recently announced release is the second release of reserves since the conflict in Ukraine started on February 24th.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/white-house-says-india-imports-only-1-2-of-russias-total-energy-imports-468628">White House says India imports only 1-2% of Russia's total energy imports</a>

The release of crude reserves aims to drive down the rising fuel prices around the globe.

However, experts and analysts have warned that even with the emergency reserve releases oil supply remains tight.

India, which is one of the largest importers of oil has announced that it is evaluating ways to support IEA's move.

Watch |&nbsp;Gravitas: Petrol, Diesel prices soar in India

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-petrol-diesel-prices-soar-in-india-468944/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

"In the interest of collaborating with like minded countries on these positive initiatives, Government of India is examining what it can do to support these actions."&nbsp;

Before the Russian attack on Ukraine, IEA members held a collective emergency stockpile of 1.5 billion barrels of crude.

(With inputs from agencies)

In face of the global energy shortage that the world is experiencing due to the ongoing Russia-Ukraine conflict, the International Energy Agency (IEA) has announced that its member countries will be releasing a whopping 120 million barrels of crude oil reserves over a period of six months.

In face of the global energy shortage that the world is experiencing due to the ongoing Russia-Ukraine conflict, the International Energy Agency (IEA) has announced that its member countries will be releasing a whopping 120 million barrels of crude oil reserves over a period of six months. As per IEA the "unanimous" agreement to release the stock was reached by the organisation's 31 members on April 1. As per a Reuters report, about half of the 120 million barrels will be contributed by the United States. Also read | White House says US ready to become India's 'reliable supplier' to counter Russia dependence This is the largest stock release in the history of organisation and was confirmed by the Governing Board of the IEA as reported by Xinhua news agency. Earlier IEA had released 62.7 million barrels of crude oil on March 1st and this recently announced release is the second release of reserves since the conflict in Ukraine started on February 24th. Also read | White House says India imports only 1-2% of Russia's total energy imports The release of crude reserves aims to drive down the rising fuel prices around the globe. However, experts and analysts have warned that even with the emergency reserve releases oil supply remains tight. India, which is one of the largest importers of oil has announced that it is evaluating ways to support IEA's move. Watch | Gravitas: Petrol, Diesel prices soar in India "In the interest of collaborating with like minded countries on these positive initiatives, Government of India is examining what it can do to support these actions." Before the Russian attack on Ukraine, IEA members held a collective emergency stockpile of 1.5 billion barrels of crude. (With inputs from agencies)

Amid global energy crisis, IEA to release 120 million barrels of crude, India supports decision

The unsustainable population growth and the resulting consumption habits have caused a global energy crisis. Transitioning to renewable energy is the only solution. Watch 'Mission Sustainability: Population VS Planet' where we explore the problems and solutions to 'Population and the Energy Crisis'.

Mission Sustainability: Population vs Planet | Global Energy Crisis | Mobius Foundation