Analysis-Drone strike in Egypt sparks security concerns about Suez oil exports

AI Summary

A drone strike on two gas tankers in Egyptian waters near the Suez Canal has raised concerns about energy security for Saudi Arabian oil exports. Despite attacks on vessels in the Strait of Hormuz and Bab el-Mandeb, the Suez Canal and Sumed pipeline remain vital export routes for Saudi energy cargoes.

By Jonathan Saul, Marwa Rashad and Ahmad Ghaddar LONDON, July 30 (Reuters) - A drone strike that damaged two gas tankers in Egyptian waters has renewed energy security concerns about the nearby Suez Canal and a related pipeline, a vital export route for Saudi Arabian oil since the beginning of the Iran war. Even as Iran and its Houthi allies have fired on tankers transiting the Strait of Hormuz and Bab el-Mandeb, Egypt's Suez Canal and Sumed pipeline continued to offer safe, northbound export routes for Saudi Red Sea energy cargoes.