Saudi Arabia reroutes exports as Hormuz tensions escalate

Saudi Arabia has rerouted a portion of its exports from the Strait of Hormuz to Red Sea shipping routes in response to disruptions caused by the conflict involving Iran, the United States, and Israel, Saudi Minister of Industry and Mineral Resources Bandar Ibrahim Alkhorayef said.

Speaking to Russian media on the sidelines of the St. Petersburg International Economic Forum (SPIEF), Alkhorayef said the kingdom had successfully adapted its logistics operations and maintained the continuity of exports despite regional instability.

“Saudi Arabia has demonstrated a high degree of resilience and shown the world that we continue to operate and develop,” the minister said. “For example, in the fertilizer sector, Saudi Arabia is a major exporter. At the beginning of the crisis, we experienced a slight decline in shipments because most of our fertilizers were transported through the Persian Gulf and the Strait of Hormuz. However, we subsequently restructured our entire logistics network to use routes through the Red Sea, and today we have returned to normal operations.”

Alkhorayef acknowledged that ongoing tensions in the region have affected investor sentiment, particularly with regard to new projects and investment plans.

“Tensions in the region do have some effect, especially when it comes to new projects and investments, as investors tend to be highly sensitive to such developments,” he noted.

Despite these challenges, the minister said recent events had underscored Saudi Arabia’s economic resilience and ability to sustain growth under difficult circumstances.

“The current developments have also shown the world that Saudi Arabia, despite political tensions and emerging difficulties, will always retain its capacity for growth and resilience,” Alkhorayef noted.

By Vafa Guliyeva