Will Houthi attacks on Saudi ships hurt India | Explained
The story so far: On Thursday (July 23, 2026), oil prices climbed above $100 a barrel, the highest in nearly two months, after the Houthis
The story so far: On Thursday (July 23, 2026), oil prices climbed above $100 a barrel, the highest in nearly two months, after the Houthis in Yemen said they had attacked two Saudi oil tankers in the Red Sea. The strikes, which the Houthis said were part of a “naval blockade” on Saudi Arabia, threaten to block another vital chokepoint, the Bab el-Mandeb, in the global oil trade after the Strait of Hormuz. While Al Masirah, the official television channel run by the Houthis, said that the ships Encelia and Layla were hit early on Thursday (July 23, 2026), the Saudi Press Agency said Encelia was indeed struck, but the attack on Layla was unconfirmed. Reports said that the Houthis carried out drone and missile attacks on the two tankers. Encelia sent out an SOS saying it was hit by a missile near the Saudi port of Jizan. Why attack Saudi ships? The Yemen-based militants, aligned with and armed by Iran, control areas near the strait. When the U.S. and Israel attacked Iran in late February, global experts had predicted that the Houthis, at the behest of Iran, could open a new front in the Red Sea and threaten shipping routes, giving the Iranian regime leverage in negotiations with the U.S. In early March, Saudi Arabia began diverting millions of barrels of crude oil bound for the Strait of Hormuz to the Yanbu port on Red Sea through its 1,200-km-long East-West Pipeline.
But the easiest route to ship this oil out of Yanbu to markets in Asia passes through the Bab el-Mandeb, south of the Red Sea. The other route is to sail north, take the Suez Canal and circumvent the Cape of Good Hope, a journey that is several weeks longer and more expensive. The Iranian leverage lies in making the Houthis add to the global oil shock by expanding the conflict, constraining supply lines, and compounding energy costs. According to Reuters, Iran had flown in gold and “Islamic Revolutionary Guard Corps [IRGC] commanders, military advisers and missile- and drone-related equipment into Yemen this month”, indicating that Iran wants to fund and “strengthen the ability of its Houthi allies to threaten Red Sea shipping.” The report said that the IRGC commanders “travelled there to support Houthi operations and provide training on new missile systems”. What happened on July 22? When the Strait of Hormuz was shut, Yanbu port exported around 4.1 million barrels of crude oil a day in June. Reports said that the amount was almost 65% of the Saudi oil that would have flown through Hormuz. On Tuesday (July 21, 2026), Xin Long Yang, a very large crude carrier carrying 2 million barrels of Saudi oil to China, and Rodos, ferrying 700,000 barrels of crude to India, changed course in the Red Sea after the Houthis announced the blockade.
The BriefWire