Three oil tankers carrying Saudi crude to China and India abruptly changed course in the Red Sea after Yemen’s Iran-backed Houthi movement warned shipping companies against calling at Saudi ports, signalling a fresh threat to global energy supplies and trade.
The diversion of the vessels suggests a second major disruption to global oil shipping routes after the closure of the Strait of Hormuz, raising concerns that the conflict in the Middle East could further tighten already strained energy markets.
The Houthis on Monday declared what they described as a naval blockade of Saudi Arabia, opening a potential new front in the wider conflict involving Iran, Israel and the United States. In a notice sent to shipping companies, the group warned vessels not to load or discharge cargo at Saudi ports, saying ships engaged in such activity could be targeted “in any location.”
The warning has put renewed focus on the Bab el-Mandeb Strait, the narrow waterway linking the Red Sea to the Gulf of Aden. The Houthis control much of Yemen’s Red Sea coastline, including areas overlooking the strategic chokepoint.
With the Strait of Hormuz currently blocked because of the conflict, Saudi Arabia’s Red Sea export terminal at Yanbu has become the kingdom’s primary alternative route for exporting millions of barrels of crude oil every day.
Tankers Reverse Course
Shipping data showed that the Xin Long Yang, a Very Large Crude Carrier (VLCC) carrying around 2 million barrels of Saudi crude for China, completed loading at Yanbu on Monday before initially heading south towards the Bab el-Mandeb Strait. The vessel later made a U-turn and headed north towards the Suez Canal instead.
Two other tankers carrying Saudi oil to India also altered their routes.
The Rodos, loaded with approximately 700,000 barrels of crude, reversed course on Tuesday and sailed towards the Suez Canal. Another tanker, the Amazon, which completed loading at Yanbu the same day, also abandoned its original route and headed north.
According to shipping data, all three vessels switched off their tracking transponders after changing course.
Another VLCC, New Prime, which had been scheduled to arrive at Yanbu later this week to load crude, also turned back before entering the Red Sea.
The shipping companies managing the vessels did not immediately respond to requests for comment.
Insurance Costs Rise
The latest developments have already begun affecting global shipping markets.
Industry sources said war-risk insurance premiums have increased sharply over the past 24 hours as insurers reassess the risks associated with Saudi ports and Red Sea shipping.
British maritime security firm Ambrey advised shipowners to reconsider Red Sea transits after calling at Saudi ports, assessing such vessels to be at a high risk of attack.
Oil Exports Continue—For Now
Despite the heightened tensions, Yanbu continues to load crude onto ships already operating inside the Red Sea or arriving through the Suez Canal.
Shipping data showed several tankers—including the Olympic Luck—were still heading towards Yanbu, while others already close to the port continued their voyages.
However, most tankers operating in the Red Sea or loading at Yanbu have switched off their transponders since Tuesday, making vessel movements harder to track.
Longer Routes, Higher Costs
If tankers are forced to avoid the Bab el-Mandeb Strait altogether, cargoes destined for Asia would need to transit the Suez Canal before sailing through the Mediterranean and around Africa—a diversion that could add weeks to delivery times and significantly increase shipping costs.
Brokerage firm Clarksons said that while a full Houthi blockade remains unlikely given the group’s limited naval capabilities, an escalation in attacks on Saudi-linked shipping could still reshape global crude flows.
On average, around 10 crude oil tankers transit the Bab el-Mandeb every day.
Analysts said prolonged disruption could force more Saudi crude exported from Yanbu to be redirected towards European markets instead of Asia, altering established trade patterns and putting additional pressure on global energy markets already affected by the Middle East conflict.
(with inputs from Reuters)
