Saudi oil tankers bound for China and India make U-turn after Houthi threat in Red Sea
Two oil tankers carrying Saudi crude to China and India reversed course in the Red Sea on Tuesday (July 21) after Yemen's Houthi rebels declared
Two oil tankers carrying Saudi crude to China and India reversed course in the Red Sea on Tuesday (July 21) after Yemen's Houthi rebels declared a naval blockade against Saudi Arabia and warned they would target ships sailing to or from Saudi ports, raising fresh concerns over global energy supplies and maritime trade. According to Reuters, citing LSEG shipping data, the two tankers made U-turns and headed north toward the Suez route following the Houthi warning. The development comes as the Iran-backed group Houthis expands its campaign beyond the Strait of Hormuz, opening a potential new front in the escalating regional conflict involving the United States and Iran. Saudi crude tanker carrying 2 million barrels turns back One of the vessels, the very large crude carrier (VLCC) Xin Long Yang, departed the Saudi Red Sea port of Yanbu on Monday carrying about 2 million barrels of crude oil bound for China. Bloomberg reported that the tanker halted before reaching the Yemeni border on Tuesday morning before reversing course and heading north, instead of continuing through the Bab el-Mandeb Strait. The ship's diversion highlights growing security risks for Saudi Arabia's Red Sea oil export route, which has become increasingly important after the Iran conflict severely disrupted shipping from the kingdom's Persian Gulf terminals. Saudi Arabia increasingly relies on its East-West Pipeline to export crude via the Red Sea after shipping through the Strait of Hormuz was disrupted by the Iran conflict. Houthi blockade threatens Red Sea shipping The Houthis on Monday announced a naval blockade against Saudi Arabia, warning that they would resume attacks on vessels calling at Saudi ports.
The Bab el-Mandeb Strait, which links the Red Sea with the Gulf of Aden and the Arabian Sea, is one of the world's busiest maritime chokepoints and a vital route for crude shipments heading to Asia. The latest warning raises fears of renewed attacks on commercial shipping and further disruption to global oil flows. Longer route could more than double journey If the Xin Long Yang avoids the Bab el-Mandeb, it may have to take a significantly longer route via the Suez Canal and around Africa, as per Bloomberg. Because a fully loaded VLCC cannot transit the Suez Canal at full draft, the vessel would first need to unload roughly half of its cargo into Egypt's Sumed pipeline, which transports crude from the Red Sea to the Mediterranean. The oil would then be reloaded at the Mediterranean terminal of Sidi Kerir before continuing to China. The detour would increase the voyage from around 7,000 miles to more than 17,000 miles, substantially raising freight costs and delivery times, the Bloomberg stated. Escalating regional conflict The Houthi announcement comes amid a sharp escalation in tensions following the collapse of an interim peace agreement between the United States and Iran. Since the breakdown of the deal, Iran has targeted shipping linked to the Strait of Hormuz and launched attacks on US military bases in neighboring Gulf countries, while Washington has responded with repeated strikes on Iranian territory. By threatening shipping in the Red Sea in addition to the Strait of Hormuz, the Houthis have widened the risks facing two of the world's most strategically important maritime trade routes, increasing concerns over oil supplies, shipping costs and broader disruptions to global commerce.
The BriefWire