Bloomberg: MBS Scores Unexpected Economic Wins as Saudi Red Sea Corridor Replaces Hormuz

Bloomberg published a major analysis on May 25 reporting that Saudi Arabia is reaping billions in added revenue as the Iran war disrupts global energy flows and forces supply chains to reroute through the Kingdom. With the Strait of Hormuz closed since February 28, Saudi Arabia's Red Sea coast has emerged as a vital transit corridor — the East-West Pipeline (Petroline) running at full 7 million bpd capacity, while the Yanbu and Jeddah Islamic Port have seen dramatically increased freight volumes. MBS's long-standing ambition to position Saudi Arabia as a global logistics and trading hub is accelerating faster than anticipated, with shipping companies paying premium rates for Red Sea routing. However, Bloomberg noted the gains are unevenly distributed — oil revenue from eastern province exports remains constrained, and the Q1 2026 budget deficit of SAR 125.7B reflects the net cost of the Hormuz crisis. The analysis characterized Saudi Arabia's position as 'unintentional beneficiary of a war it did not want and cannot fully control.'