Pakistan Seeks Saudi Oil Route Via Red Sea Amid Hormuz Strait Closure

Islamabad, Pakistan – Pakistan has formally requested Saudi Arabia to reroute crude oil supplies through the Red Sea port of Yanbu following the closure of the Strait of Hormuz, a critical waterway for global energy supplies. The request comes after the United States-Israel offensive on Iran led to the closure of the Strait on February 28th, disrupting an estimated 20 million barrels per day of crude oil and petroleum products Reuters.

Formal Request and Saudi Assurance

Federal Minister for Petroleum Ali Pervaiz Malik made the request during a meeting with Saudi Ambassador to Pakistan, Nawaf bin Said Al-Malki. According to a statement from the Petroleum Ministry Anadolu Agency, the Saudi Ambassador assured “full” support and affirmed that Riyadh will stand firmly with Pakistan to meet any emergency requirements.

Monitoring the Situation and Ensuring Supply

Malik emphasized that Pakistan is closely monitoring the evolving situation, as the majority of the nation’s energy supplies typically transit through the Strait of Hormuz Dawn. Saudi Arabian sources have reportedly assured the security of supplies through the port of Yanbu, offering a potential solution to meet Pakistan’s energy needs.

Government Response and Fuel Availability

Despite the challenging circumstances, Finance Minister Muhammad Aurangzeb stated on Wednesday that there is no current fuel shortage in Pakistan Anadolu Agency. A newly created 18-member cabinet committee is reviewing the impact of the Strait of Hormuz closure and has determined that Saudi supplies of finished products can be routed through the Red Sea, while imports from the UAE via Fujairah remain unaffected.

Contingency Planning and Cost Considerations

The cabinet committee acknowledged that a prolonged closure of the Strait of Hormuz could have implications for Pakistan’s energy supply chain. They plan to monitor cost trends once the London market resumes trading and will reconvene regularly to assess the situation. The government has decided to continue passing on the impact of rising global oil prices to consumers through the existing fortnightly adjustment mechanism to avoid a fiscal burden Dawn.

Continued Assistance and Prioritized Supplies

Minister Malik expressed gratitude for Saudi Arabia’s continued support, noting that the kingdom is already assisting Pakistan. One vessel has been assured dispatch from Pakistan to Yanbu to lift crude oil Dawn. He further expressed hope that supplies of oil from Yanbu would be prioritized for Pakistan.