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Saudi Oil Export Costs Surge as Red Sea Risks Mount

Saudi Arabia’s workaround for the Strait of Hormuz now carries a war-risk insurance bill nearly as expensive as sending tankers through Hormuz itself. Quoted premiums for Saudi-linked tankers calling at the Red Sea port of Yanbu have tripled to around 3% of a vessel’s value from less than 1% in early July, according to Reuters. At Saudi ports farther south, including Jizan, quoted premiums can reach 7%. Hormuz voyages are running between 6% and 9%. That adds millions of dollars to every cargo. A voyage from Yanbu can carry roughly $3…