Following a September 13, 2026 drone attack on Saudi Arabia's East-West pipeline, the kingdom halted Red Sea exports and redirected crude through the Strait of Hormuz. This surge pushed ship-to-ship transfer capacity in the Gulf of Oman to its limits, doubling transfer times to 10 days. The resulting tanker shortage drove daily charter rates for supertankers to a record $1.27 million, prompting Asian buyers to seek alternative transfer sites off India and Malaysia.
Congestion in Gulf of Oman ship-to-ship transfers
- ▪The ramp-up in Saudi Arabian oil volumes following the East-West pipeline attack has created queues for ship-to-ship transfer equipment like tugboats and labor in the Gulf of Oman
- ▪State-run Saudi Aramco sold more than 60 million barrels of crude for ship-to-ship transfer off Sohar, Oman, this month and next.
- ▪Ship-to-ship transfer operations near the Strait of Hormuz now require nearly 10 days to complete, up from five to seven days previously, according to Vortexa analyst Emma Li.
- ▪Ship-to-ship oil transfers in the Gulf of Oman for West Asian oil have reached their capacity limits after Saudi Arabia diverted exports from the Red Sea.
Alternative ship-to-ship transfer locations
- ▪Delays in ship-to-ship transfers in the Gulf of Oman have prompted Chinese buyers to request alternative transfer locations off the west coast of India or Malaysia
- ▪South Korean refiner S-Oil is sending two Very Large Crude Carriers to conduct ship-to-ship transfers off Vadinar on the west coast of India.
Status of the East-West pipeline
- ▪The closure of the East-West pipeline after a September 13 drone attack halted Saudi Arabian oil exports from the Red Sea port of Yanbu, forcing a redirection of crude through the Strait of Hormuz
- ▪Industry sources reported that Saudi Arabia's East-West pipeline restarted at low volumes and began ramping up during the week of September 21, 2026.
- ▪Saudi Arabia closed its East-West oil pipeline after it sustained damage in a drone attack launched from Iraq on September 13, 2026.
- ▪Approximately 20 Very Large Crude Carriers are effectively trapped in the Mediterranean awaiting the return of the Yanbu terminal to operation, according to Oil Brokerage.
- ▪Saudi Aramco CEO Amin Nasser stated on September 24, 2026, that temporary interruptions to oil infrastructure such as the East-West pipeline usually last for days rather than weeks or months
Surge in Saudi crude export volumes
- ▪Saudi crude exports transiting the Strait of Hormuz were on track to rebound to 3.6 million barrels per day in September 2026, up from 900,000 barrels per day in August 2026.
- ▪Saudi Arabia's crude oil exports reached 6 million barrels per day in September 2026, the highest level since the war with Iran began approximately seven months prior.
Increased demand for supertankers
- ▪Anoop Singh of Oil Brokerage stated that the additional supertankers required to move the same amount of oil as before the Iran war rose to 40 in September 2026, up from 24 in August
- ▪The nearly 3 million barrel per day increase in Saudi Arabian exports through the Strait of Hormuz in September requires an additional 36 to 40 Very Large Crude Carriers, according to Kpler
Rising shipping costs and tanker rates
- ▪The daily time charter rate for a Very Large Crude Carrier delivering oil from West Asia to China reached a record $1.27 million on September 21, 2026.
- ▪Increased tanker demand has reduced ship availability, raising shipping costs and increasing the time cargoes remain on the water before reaching refineries.
Debatable claims
- ▪Record-high tanker charter rates are justified by wartime shipping risks
- ▪Ship-to-ship transfers are a reliable long-term solution for bypassing conflict zones
- ▪Saudi Arabia's oil export infrastructure is resilient enough to withstand ongoing wartime disruptions
- ▪Asian refiners bear the primary responsibility for managing Middle East oil supply disruptions
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