Houthis' Saudi shipping threat prompts crude tankers to reverse in Red Sea

Houthi blockade threats against Saudi-linked shipping at the Bab al-Mandeb disrupted tanker traffic, with at least two Saudi crude cargoes reversing course and overall transit volumes falling sharply.

Summary

Yemen's Houthis, also known as Ansar Allah, said they were imposing an immediate maritime embargo on Saudi Arabia and warned that vessels using Saudi ports could be attacked, centering the threat on the Bab al-Mandeb Strait. Reuters reported on July 21, citing London Stock Exchange Group ship-tracking data, that at least two tankers carrying a combined 2.7 million barrels of Saudi crude loaded at Yanbu reversed course in the Red Sea and headed north toward the Suez Canal, while another tanker due to load at Yanbu turned back near Oman before entering the Red Sea. Separately, tanker traffic through Bab al-Mandeb fell 69% after the announcement, according to counts cited in the newer report, underscoring how the warning was already disrupting shipping. The disruption came as broader Middle East tensions and separate Ukrainian attacks affecting Russia's Black Sea export route added to concerns over oil supplies, freight costs and insurance premiums.

Terms & Concepts
  • Bab al-Mandeb Strait: A strategic waterway linking the Red Sea to the Gulf of Aden that is critical for global shipping and oil transit.
  • SUMED pipeline: An Egyptian pipeline used to move oil between the Red Sea and the Mediterranean when fully laden very large crude carriers cannot transit the Suez Canal.
  • Brent crude: A global benchmark for oil pricing.