Houthi Threat Squeezes Options for Oil Shippers | Rigzone SEARCH JOBS >> CREATE ACCOUNT SIGN IN Oil & Gas Jobs ▼
Search Jobs Jobs By Category Featured Employers Oil & Gas News ▼ Headlines Most Popular Oil Prices Events Training
Equipment SOCIAL Salary / Insights ▼AI RigzoneGPT Chatbot Latest Oil Prices WTI Crude $91.98 +5.93% Brent Crude
$100.70 +7.05% Natural Gas $2.94 +0.65% Recruitment Job Postings & Talent Database Packages Search CV/Resumes
Recruitment Dashboard Post Job FAQ | Advertise SUBSCRIBE SEARCH ARTICLES NEWS Houthi Threat Squeezes Options for Oil
Shippers by Bloomberg|W. Soon, G. Smith, N. Lua, J. Lee & A. Longley Wednesday, July 22, 2026 | 11:03 AM EST Ships
continue to turn away from the Red Sea's southern end, after Houthi rebels announced an embargo on Saudi exports
through the Bab el-Mandeb Strait, which has become a lifeline for oil exports since the start of the U.S.-Israeli war
with Iran. Image by mustafaoncul via iStock (Update) July 23, 2026, 8:11 AM GMT: Article updated with shipbroker quote
in 10th paragraph. Ships continue to turn away from the southern end of the Red Sea, after Yemen's Iran-backed
Houthi rebels announced an embargo on Saudi exports through the Bab el-Mandeb Strait, a narrow channel that has become a
lifeline for oil exports since the beginning of the US-Israeli war with Iran. Tracking data shows two Asia-bound vessels
appear to be heading north toward the Suez Canal - a diversion that could add 30 days of sailing time in some cases
- while others have paused their journeys. No crude oil tankers have been seen transiting Bab el-Mandeb since the
Houthis emailed shipowners earlier this week to tell them not to cross, although it's possible some have done so
with their transponders turned off. A disruption to traffic through the Red Sea would pile pressure onto global oil
markets, which have been roiled by renewed hostilities in the Gulf and the effective collapse of a ceasefire between the
US and Iran. Brent futures have already spiked more than 30 percent this month, passing $95 a barrel. At the port
of Yanbu, the main conduit through which Saudi Arabia has been able to continue its oil exports, just two of the seven
berths used to export oil were occupied on Wednesday morning, according to tracking data - although the European
Union's naval force in the Red Sea has advised merchant vessels to turn off their transponders if they called at
ports in the Kingdom. "Middle East risk has become a two-chokepoint problem," Standard Chartered analysts
including Emily Ashford wrote. "The cost of moving barrels is likely to increase while the risk
persists." To keep its oil flowing to market, Saudi Arabia has shipped barrels across the breadth of the
country to its western coast and on to global markets. In the days before the Houthi threat, the kingdom had exported
record volumes of crude from its terminals on the Red Sea, shipping out 5.9 million barrels a day from the two terminals
at Yanbu in the week up to July 17, according to tanker tracking compiled by Bloomberg.Advertisement - Scroll to
continue The announcement of an embargo by the Houthis threatens that flow. The militants have previously attacked
merchant ships in the southern Red Sea, forcing vessels to divert around the area. The group hasn't struck a ship
since September last year, however, according to the EU. On Tuesday, oil tanker industry executives said shipping
companies had become more cautious about calling at the Saudi Red Sea port, though it was too early to say if that would
impact chartering fees and, crucially, loadings. The EU advised merchant vessels linked to Saudi Arabia and the US to
avoid transiting near Yemen. There continued to be no visible transits through the Bab el-Mandeb on Wednesday afternoon.
"Everyone is waiting for the first one to go through laden with Saudi crude to see what happens," said Halvor
Ellefsen, a London-based director at Fearnleys Shipbrokers UK Ltd. "In the meantime everyone is sitting on their
hands." As in the Strait of Hormuz, ships' attempts to disguise their positions to avoid attack makes it
difficult to accurately track movements in the region. However, there are signs that ships approaching the Gulf of Aden
from the Indian Ocean are stalling on their journeys as owners assess whether to transit. At least six crude oil tankers
destined to load crude at Yanbu have turned back or paused in the Arabian Sea, near the eastern approach to the Bab
el-Mandeb Strait, vessel tracking data show. On Tuesday, a Greek-owned Suezmax, the Amazon, which departed Yanbu with
more than 1 million barrels of crude, switched its destination to the Suez Canal. The tanker is meant to deliver its
cargo to India, shipping fixtures show. It is owned by Dynacom Tankers Management, one of the owners that carried on
sailing into the Persian Gulf at the start of the Iran war, but which has seen several of its vessels hit in both Hormuz
and the Black Sea in recent days. Dynacom didn't immediately respond to a request for comment. Ships carrying
liquefied petroleum gas and various volumes of crude oil have also either u-turned or paused their journeys, tracking
data shows. One vessel, Xin Long Yang, has since reverted to its original route after earlier heading north, and
is now sailing toward Bab el-Mandeb. "The escalation of violence between the US and Iran now threatens even those
few Middle Eastern crude barrels that have been able to bypass Hormuz," Braemar analysts including Henry Curra
wrote. "Unless the chaos in the Middle East can be resolved quickly, we are likely to see a re-emergence of our
'urgency premium' for freight." The Houthi militant group in Yemen is ready to attack shipping from
positions near the Bab el-Mandeb strait at the southern end of the Red Sea, according to the Joint Maritime Information
Center, a global monitoring body for naval security. The EU naval mission to the Red Sea provides escorts for civilian
vessels in the region, but has warned that it has limited assets and that ships looking for protection may face waiting
times. Unlike the Persian Gulf, the Red Sea has an escape route north through the Suez Canal, but that means significant
additional sailing times and shipping costs for companies looking to move oil to Asia. "It's a cacophony of bad
news at the moment," said Sasha Foss, an analyst at CSC Commodities, a division of Marex Group. "I expect
things to correct higher the longer the Strait is closed, as we no longer have the buffers." What do you think?
We’d love to hear from you, join the conversation on the Rigzone Energy Network. The Rigzone Energy Network is a new
social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect
with peers and industry insiders and engage in a professional community that will empower your career in energy. OIL,
GAS & ENERGY NEWS STRAIGHT TO YOUR INBOX! There’s a reason 700K+ energy professionals have subscribed. Recommended
Jobs For You Search All Jobs site links Home Create Account Jobs Search Jobs Candidate Hub Candidate FAQs Network FAQs
News Newsletter Recruitment Advertise Conversion Calculator Site Map Rigzone Social Network About Rigzone Contact Us
Community Guidelines Terms of Use Privacy Policy GDPR Policy CCPA Policy FOLLOW RIGZONE RSS Feeds Copyright © 1999
- 2026 Rigzone.com, Inc. 700K Industry Pros can’t be wrong. 700K Industry Pros can’t be
wrong. X