Houthi Attacks Force Saudi Oil Tankers to Divert Routes

Shipping traffic through the Bab el-Mandeb Strait fell to its lowest level in months on Sunday after the Houthis attacked Saudi Aramco oil installations in Jizan and Yanbu. The Yemeni militant group intends to blockade Saudi exports as part of an expanded involvement in the U.S.-Iran conflict. In response, a Saudi-led military alliance bombed Houthi positions in the port of Hodeidah on Friday.

To avoid the chokepoint, Saudi Arabian oil exports are diverting toward the Suez Canal and the Mediterranean. This shift follows previous disruptions in the Strait of Hormuz, which pushed the Government of Saudi Arabia to increase shipments from its western coast via the East-West Pipeline. At least four tankers, including the Olympic Luck and Torm Innovation, reversed course this week. Some vessels are now using the Sumed pipeline in Egypt or sailing around Africa, adding up to 30 days to journeys bound for Asia.

These disruptions have caused physical crude oil prices in the Middle East, Europe, and Africa to reach two-month highs, while Brent crude recently touched $100 per barrel. In Yanbu, tankers have transitioned to AIS-dark operations to shield themselves from Houthi targeting. Kpler data shows only 11 commodity vessels transited the Bab el-Mandeb Strait on Sunday.