Putin, Saudi crown prince discuss reopening key waterways amid oil disruptions
Saudi Arabia’s crude oil exports rose about 3.3% in July from the previous month to 4.125 million barrels per day, their highest level since March, according to Joint Organizations Data Initiative data reported by Reuters. Drone attacks had forced the kingdom to shut the pipeline on September 13.
The two leaders exchanged views on the situation in the Middle East and stressed that a political and diplomatic settlement remained the only viable path forward, according to the Kremlin. “The importance of ensuring the safe and unimpeded passage of vessels through the region’s international waterways, including the Bab el-Mandeb and Strait of Hormuz, was emphasised,” the Kremlin said, as quoted by Reuters. “Saudi crude and product exports increased in July as regional tensions moderated,” UBS analyst Giovanni Staunovo said, while warning that exports could be weaker in August, particularly from Red Sea terminals, because of renewed tensions involving the Houthis. Saudi Arabia also resumed operations at its East-West Pipeline, with exports potentially following from the Red Sea port of Yanbu, according to three sources cited by Reuters.
Russian President Vladimir Putin and Saudi crown prince Mohammed bin Salman discussed the need to ensure safe passage through the Strait of Hormuz and Bab el-Mandeb during a phone call on Tuesday, the Kremlin said, as disruptions to the key waterways continue to affect regional oil flows and global trade. The New York Times reported that US President Donald Trump called off US strikes against the Houthis on Sunday at the last minute, after troops had already begun loading bombs onto planes.