At least two oil tankers carrying Saudi crude from the Red Sea port of Yanbu reversed course after Houthi rebels in Yemen declared a "maritime embargo" on Saudi Arabia. The very large crude carrier Xin Long Yang, transporting an estimated 2 million barrels of Saudi crude to China, turned north before reaching the Yemeni border. Another tanker also made a U-turn and headed back towards the Suez Canal, according to shipping data.
The Houthis announced on Monday that they were imposing a naval blockade on Saudi Arabia, effective immediately, in retaliation for what they called an "unjust and oppressive siege" on Yemen. This threat put the Bab el-Mandeb Strait, a critical energy chokepoint connecting the Red Sea to the Gulf of Aden, at risk. A full closure of this strait could significantly impact global oil supply, potentially reducing it by 7%, in addition to the 10% cut already seen from the war in the Gulf.
While Saudi Arabia's foreign ministry condemned the threats and vowed to protect its ships, the announcement alone is expected to disrupt shipping and create uncertainty for Saudi ports. Oil prices gained approximately 2% following the threats, though signs of renewed diplomacy between Tehran and Washington helped to limit further increases. The Bab al-Mandab Strait, a 32km-wide waterway, has become increasingly important for Saudi oil shipments, with recent volumes transiting the strait reaching 7.4 million barrels per day in June, or about 7% of global oil output.
