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

A drone strike damaged two gas tankers at Egypt's port of Damietta, near the Suez Canal.

The attack has renewed security concerns about the Suez Canal and Sumed pipeline, vital export routes for Saudi oil since the Iran war.

Saudi oil rerouted from the Strait of Hormuz to the Red Sea after the war, but Houthi threats have reduced Red Sea tanker traffic.

Saudi crude loadings via the Sumed pipeline rose to 28.79 million barrels in July from 19.52 million in April.

The potential risk to the Suez Canal chokepoint threatens up to 5 million barrels per day of oil supply bypassing Hormuz.