Houthi rebels in Yemen have escalated their threats against Saudi Arabian oil exports, declaring a naval blockade on shipments from the Kingdom. This follows an earlier warning to shipowners against calling at Saudi ports. The Houthis stated they would target Saudi and U.S.-linked tankers transiting the Bab el-Mandeb strait, which connects the Red Sea to the Indian Ocean.
In response to these threats, some oil tankers carrying Saudi oil have reportedly made U-turns in the Red Sea, with some heading north towards the Suez Canal. One notable incident on Thursday involved two Saudi Arabian oil tankers being attacked by the Houthis, with one vessel reportedly set ablaze and a second hit. This mirrors a Wednesday attack where a Saudi official news agency confirmed one tanker was hit and caught fire. These actions have significantly impacted oil markets, with Brent crude prices hitting $100 a barrel, the highest since the end of May.
Experts are now calling this a "two-chokepoint problem" for Middle East risk, referring to the combined threat to the Red Sea and the Strait of Hormuz. Saudi Arabia has been using its east-west oil pipeline to increase exports via the Red Sea, particularly since the Suez Canal has seen disruptions. However, the Houthi blockade now jeopardizes this crucial route. The diversion of ships around the Red Sea, towards the Suez Canal, could add significant sailing time and increase shipping costs, further pressuring global energy markets already strained by broader geopolitical tensions in the region.
